Subject: Selling Price using Profit Margin
Who are you: Student
What is the selling price of my inventory, find using the profit margin?
What if profit margin is greater than 100%.
The given example for profit margin is that the sandwich is bought for $1 and sold for $2.
Inventory A costs $2,300. The profit margin is 55%
Inventory B cost is $4,500. The profit margin is 210%.
Suppose that your inventory costs $3,500 and the profit margin is 120%. That means that you want to make a profit of 120% of $3,500. 120% of $3,500 is
120/100 $3,500 = $4,200
If this is to be your profit and the inventory cost you $3,500 then you must sell the inventory for
$3,500 + $4,200 = $7,700