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Your profit margin is your sales price minus your costs. Costs include materials or products, labor cost, taxes and things like water, electricty and gas that are easily forgotten.
So suppose you can sell 100 items for 50 dollars, but you need to buy them at 10 dollars, your profit margin could be 40 dollar per product *100 = 4000 dollars, but to sell those 100 products you need to pay a day's wage to your sales clerk, you need to pay for the electricy and the water too. Imagine you're working in an expensive area and it costs 1000 dollars. You're left with a profit of 4000-1000= 3000 dollars.
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What ratio indicated the percentage of each sales dollar that is available to cover fixed costs and to provide profit?
Contribution margin ratio
A company has an ROA of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent. What is the companys total asset turnover and what is the firm's equity multiplier?
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
How would you work this out geeta makes a cake for 2 and sells it for 2.50 what is her percentage profit?
Profit = Selling price - CostSo in this case: Profit = $2.50 - $2Profit = $.50Percentage profit = (profit/selling price) x 100So in this case: percentage profit = ($.50/$2.50) x 100Percentage profit = (.2) x 100Percentage profit = 20%Improved Answer:-It is: (2.50-2)/2 times 100 = 25% profit
How do you calculate On Base Plus Slugging percentage?
On base percentage plus slugging percentage
Calculate 30.10 into percentage?
30.10 into percentage = 3010%30.10 * 100% = 3010%
