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.
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%