11 Profit Margin
The profit margin, which we will express as a percent, is the percent of your business’s earnings that you get to keep. You want your profit margin to be as high as possible! The formula for calculating your profit margin is:
Let’s say your net profit, or income, for the month is $4,657.09, but your total income was $68,043.12. You would set up the problem like this:
Your profit margin is 6.84%, which means that you get to keep 6.84% of your business’s earnings for the month.
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Assignment
Purpose
To practice calculating the profit margin of a business.
Outcomes
By completing this assignment, you will be able to…
- Understand what a profit margin is.
- Calculate the profit margins of given businesses.
Instructions
To complete this assignment…
- Read the problems carefully and find the correct answers.
- Be sure to show how you set up each problem.
Tips for Success
To help in the completion of this assignment, make sure to:
- Read each problem carefully and understand what it is asking.
- Include how you set up each problem in order to get credit.
Profit Margin Assignment
Find the profit margins given the total revenue and net profit (net income).
| Total Revenue | Net Profit | Profit Margin |
| $13,493.38 | $4,287.29 | 1) |
| $15,283.49 | $3,203.53 | 2) |
| $21,394.05 | $5,692.29 | 3) |
| $19,384.02 | $2,139.50 | 4) |
| $18,274.58 | $6,392.30 | 5) |
| $14,207.35 | $1,293.69 | 6) |
| $15,284.04 | $3,193.49 | 7) |
| $17,827.28 | $2,902.83 | 8) |
| $11,294.42 | $1,284.49 | 9) |
| $13,289.48 | $2,298.51 | 10) |
| $16,293.61 | $3,596.54 | 11) |
| $15,498.09 | $3,019.21 | 12) |
| $12,380.57 | $1,897.32 | 13) |
| $14,253.90 | $3,029.29 | 14) |
| $17,384.58 | $5,293.80 | 15) |
| $20,485.39 | $5,294.07 | 16) |
| $19,284.59 | $4,294.56 | 17) |
| $15,394.48 | $2,394.90 | 18) |
