What is profit margin?
Profit Margin is the percentage of the total sales price that is profit.
To calculate the sales price at a given profit margin, use this formula:
Sales Price = c / [ 1 - (M / 100)]
c = cost
M = profit margin (%)
Example: With a cost of $8.57, and a desired profit margin of 27%,
sales price would be:
Sales Price = $8.57 / [ 1 - ( 27 / 100)]
Sales Price = $11.74
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