Customer's 10K Piece Profit Margin: 28.8%

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Discussion Overview

The discussion revolves around calculating the profit margin for a customer who purchases 10,000 pieces at a specific cost and sells them at a higher price. The focus is on understanding the profit margin calculation and addressing any confusion regarding the terminology used.

Discussion Character

  • Technical explanation
  • Conceptual clarification
  • Homework-related

Main Points Raised

  • One participant asks for clarification on whether the term "margin" refers to profit margin.
  • Another participant confirms that they meant profit margin and expresses realization about overcomplicating the question.
  • A third participant provides a detailed calculation of the profit margin, showing the total cost and income, and deriving the profit margin from these figures.
  • There is a mention of personal challenges with mathematics, indicating a struggle with basic calculations.

Areas of Agreement / Disagreement

Participants generally agree on the calculation method for profit margin, but there is some uncertainty expressed regarding the terminology and the initial understanding of the question.

Contextual Notes

Some participants express confusion over the terminology used, which may affect their understanding of the calculation process. Additionally, personal experiences with mathematics are shared, indicating varying levels of comfort with the subject.

Who May Find This Useful

This discussion may be useful for individuals seeking to understand profit margin calculations, particularly in a business context, as well as those who may struggle with basic mathematical concepts.

BethTara
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customer buys 10,000 piece with cost of 0.20845 and sell price of 0.33621, what is the margin?
 
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BethTara said:
customer buys 10,000 piece with cost of 0.20845 and sell price of 0.33621, what is the margin?

do you mean profit margin?

profit margin calculator
 
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 :(
 
BethTara said:
customer buys 10,000 piece with cost of 0.20845 and sell price of 0.33621, what is the margin?
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.

Another way: buy each item at 0.20845 and selling for 0.33621 he makes a profit of 0.33621- 0.20845= 0.12776. For 10000 pieces, that is a total of 1277.6.
 
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