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If cost = 810
profit margin is 25 %what is profit and sales price ?
Why is profit 810 * 25 / 75 ?? why divide with 75
If the margin is 25% it means that the profit is 25% of the selling price.
So for every 100 sales, the profit is 25 and the cost is 75.
Or, putting it the other way round, for every 75 cost, the profit is 25 and the selling price is 100.
So if the cost is 810, then the profit is 25/75 x 810.
This is more likely to be relevant in F3 than F2. The free Paper F3 lecture on mark-ups and margins will help you.
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