You product has a variable cost of $4.42 and a selling price of $8.61. What is the margin percent?(answer as a number without the percent sign with one decimal i.e. a ten and a half percent margin would be entered as 10.5) Correct!
Question
You product has a variable cost of 8.61. What is the margin percent?(answer as a number without the percent sign with one decimal i.e. a ten and a half percent margin would be entered as 10.5) Correct!
Solution
To calculate the margin percent, you need to first calculate the margin, which is the selling price minus the variable cost.
Step 1: Calculate the margin Margin = Selling price - Variable cost Margin = 4.42 Margin = $4.19
Step 2: Calculate the margin percent Margin percent = (Margin / Selling price) * 100 Margin percent = (8.61) * 100 Margin percent = 48.66
So, the margin percent is 48.7 (rounded to one decimal place).
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