Subject: profit margins Name: Beverly Who are you: Parent Our costs to make a product is \$73.00. We want to sell this product and make a 30 percent profit margin. What is the selling price? What is the simple formula to follow? Is there a chart we can go to that shows us these percentage of profit breakdowns Beverly, To find the profit margin as a percentage take the net income (that is revenue minus expenses) divided by revenue and then multiply by 100. In other words it is the profit as a percentage of the revenue. To develop a formula let R be the revenue, C the costs and P the profit margin, then  (R - C)/R 100 = P In your situation you have C = \$73.00 and P = 30% so  (R - 73)/R 100 = 30 Solving for R gives (R - 73)/R 100 = 30 (R - 73)/R = 0.30 R - 73 = 0.3R 0.7R = 73 R = \$104.29 Penny Supplemental from Sue: Hi Beverly. You can view your problem this way: I'll be selling my product for some price (call it R). 30% of that price should be my profit, so that means 70% of the price is what it costs me to make it. 70% is just another way of saying 0.7, so 0.7R = \$73 If you divide both sides by 0.7, you get R = \$104.29 Stephen La Rocque.>