Customer's 10K Piece Profit Margin: 28.8%

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SUMMARY

The discussion centers on calculating the profit margin for a customer purchasing 10,000 pieces at a cost of $0.20845 each and selling them at $0.33621 each. The total cost for the purchase amounts to $2,084.50, while the total revenue from sales is $3,362.10. Consequently, the profit margin is calculated as $1,277.60, confirming a profit of approximately $0.12776 per piece. The conversation emphasizes the importance of simplifying calculations to avoid confusion.

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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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