AccountingQuizzes Profit Margin QuizA Firm’s sales are $100,000, the Cost of Sales is $75,000 & the expenses are…

Posted by AccountingQuizzes onÂ Saturday, October 17, 2015

## Calculate Profit Margin

A Firm’s sales are $100,000, the Cost of Sales is $75,000 & the expenses are $15,000.

Can you calculate the profit as the Percentage of Sales?

Here are your Choices for this Quiz.

A) 25%

B) 10%

C) 15%

D) 90%

## Profit as Percentage of Sales – Profit Margin Quiz Explained

To calculate profit as percentage of sales we have to first find out the Profit from the given data.

Sales value is given & we can reach at Profit by subtracting all the expenses from the Sales.

## Profit = Sales Revenue – Cost of Goods Sold – Operating Expenses

Profit = $100,000 – $75,000 – 15,000

Profit = $10,000/-

## Calculation of Profit Margin or Profit as Percentage of Sales

Profit Margin = Profit / Sales x 100

Profit Margin = $10,000 / $100,000 x 100

Profit Margin = 10%