In a scenario where a company wishes to make a profit of 25% and has a 26% overhead, what is the total gross profit percentage needed?

To determine the total gross profit percentage needed when a company aims for a 25% profit margin and has a 26% overhead, you can start by understanding how gross profit works in relation to both overhead and net profit.

The company's gross profit must cover both its overhead costs and the desired profit. Specifically, the necessary gross profit percentage can be calculated using the formula:

Total Gross Profit % = Overhead % + Desired Profit %

In this scenario, you have an overhead of 26% and a goal of achieving a profit margin of 25%. By simply adding these two percentages together, you arrive at:

Total Gross Profit % = 26% + 25% = 51%

This indicates that the company needs a gross profit percentage of 51% to cover both its overhead and the desired profit margin. Therefore, the correct answer is the total gross profit percentage needed, which is 51%. This ensures that the company's overall costs are accounted for while still achieving the targeted profit.