Profit Margin
A store buys a product for and sells it for . What is the percent
profit?

To calculate the percent profit, we first need to determine the profit amount. Subtract the cost price ($75) from the selling price ($120):

Next, we find the percent profit by dividing the profit by the cost price and multiplying by 100:

So, the percent profit is 60%!

Another fun fact: Companies often aim for a specific profit margin based on their industry standards. Understanding these standards can help businesses adjust their prices wisely. So, whether you’re managing a lemonade stand or running a tech company, knowing your profit margin is key!

Moreover, while calculating profit margins, many people mistakenly forget to account for all costs associated with production. This can lead to inflated profit figures. Always ensure to include all relevant expenses to get a true reflection of your profitability!