Advances in Consumer Research
Issue 1 : 477-485
Original Article
Profitability Analysis: Using Gross Profit Margin of Fast Food-Chain Establishment
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Mindanao State University-Tawi-Tawi College of Technology and Oceanography Sanga-Sanga, Bongao, Tawi-Tawi 7500, Philippines
Abstract

Gross profit margin measurement provides information on the establishment’s financial status. This study assesses the gross profit status, including sales revenue and cost of goods sold in the various food establishments in Bongao, Tawi-Tawi. This study employed a descriptive research method using a survey questionnaire for data collection. Ten food establishments were the key respondents in this research. The frequency and percentage method were used for data analysis. The food establishments had been operating for an average of eight years and eight months with 12 employees. Most of the establishments had an average monthly sale of Php. 701,000.00; total cost of Php. 168,350.00 and a gross profit of Php. 532,650.00. The average of fixed and variable costs was Php. 115,000.00 and Php. 53,000.00, respectively. The outcomes of this research endeavor are expected to benefit multiple stakeholders. It will provide insights into financial health, identifying potential areas for improvement and growth. It will contribute also to the existing body of knowledge by shedding light on the economic dynamics of food establishments in a unique context. Ultimately, it will facilitate evidence- based decision-making and foster sustainable development. This study is the first assessment of profitability among food establishments in the municipality

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