# 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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## 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…

2. Be sure to show how you set up each problem.

## Tips for Success

To help in the completion of this assignment, make sure to: