7. if you sell your brand of shoes for $60 a pair, and your cost of goods per pair is $15, then what is the…
7. if you sell your brand of shoes for $60 a pair, and your cost of goods per pair is $15, then what is the profit margin?\na. 10%\nb. 20%\nc. 25%\nd. none of these
Answer
Explanation:
Step1: Calculate profit
Profit = Selling price - Cost of goods. So, profit = $60 - 15=$45$.
Step2: Calculate profit - margin
Profit - margin formula is $\frac{\text{Profit}}{\text{Selling price}}\times100%$. Substitute values: $\frac{45}{60}\times 100% = 0.75\times100% = 75%$. Since 75% is not among the given options.
Answer:
d. None of these