Gross Profit Margin = Net Sales - Cost of Goods Sold

                          --------------------------------                         

                                     Net Sales

Example: The gross profit margin for F.E.D. Foods Company for 1993 is:

        

        $633,000 - $358,000 x 100 = 43.4% 

         ------------------ 

            $633,000 

(from profit and loss statement, page 12, (lines a-b)/line a)