Math CentralQuandaries & Queries


Question from Jeri:

Hi! I am trying to fill out the government form for obtaining a business licence and this is all new to wants to know the estimated percentage of revenue that my product generates. An easy formula to figure this out would be greatly appreciated!

Hi Jeri.

When the form is asking you this, it is asking you to think about how much much total revenue (money) you will receive and compare that to how much money you receive for just that specific product. Remember that revenue is not profit - it is just how much money you receive in sales.

For example, if I expect my blacksmith shop to bring in about $\$5000$ a month in sales, and that includes my estimate of $\$800$ int axes, then I need to know what percentage is $\$800$ of $\$5000.$

To calculate this kind of percentage, you just multiply the smaller number by 100 and then divide by the larger number. So for my example, $\large \frac{800 \times 100}{5000}.$ That's 16%.

Hope this helps,
Stephen La Rocque.

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