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.
This puts an anchor at the top of the page to link to within the page.
This is the Navigation section at the top of the page.
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) |