- #1
BethTara
- 2
- 0
customer buys 10,000 piece with cost of 0.20845 and sell price of 0.33621, what is the margin?
BethTara said:customer buys 10,000 piece with cost of 0.20845 and sell price of 0.33621, what is the margin?
skeeter said:do you mean profit margin?
I sure did mean the Profit margin. I figured it out, I was over thinking the question and making it harder than it actually was...Need to remember SMARTER NOT HARDER
Math is my arch nemesis! In my 30s and still use my fingers for + & -
Had to quit college because I couldn't pass intro to college algebra :(
Pretty straight forward, isn't it? If he buys 10,000 "pieces" at 0.20845 each then he paid (10000)(0.20845)= 2084.5. If he sold the 10,000 at 0.33621 each then his income is (10000)(0.33621)= 3362.1. His profit margin is 3362.1- 2084.5= 1277.6.BethTara said:customer buys 10,000 piece with cost of 0.20845 and sell price of 0.33621, what is the margin?
The term "10K Piece" refers to the quantity of products that the customer has sold. In this context, it means that the customer has sold 10,000 pieces of a particular product.
The profit margin is calculated by taking the profit (revenue minus expenses) and dividing it by the revenue. In this case, the profit margin is 28.8%, which means that for every $1 of revenue, the customer is making $0.288 in profit.
This can vary depending on the industry and competition. Generally, a profit margin of 28.8% would be considered above average and indicates that the customer is making a decent profit on their products.
There are several factors that can affect a company's profit margin, including the cost of goods sold, pricing strategy, competition, and operational efficiency. Changes in these factors can impact the profit margin positively or negatively.
There are a few ways that the customer can improve their profit margin, such as reducing expenses, increasing sales volume, or adjusting their pricing strategy. They can also analyze their operations and look for areas to improve efficiency to reduce costs and increase profitability.