Problema Solution
Mary buys 8 widgets for $40.00. She adds $1.00 in enhancements to each widget and sells them for $9.00 each. What is Mary's estimated gross profit margin?
Answer provided by our tutors
total revenue = 8*9
total revenue = $72
total cost of goods = 40 + 8*1
total cost of goods = $48
gross profit = total revenue - total cost of goods
gross profit = $72 - $48
gross profit = $24
gross profit margin = gross profit/total revenue
gross profit margin = 24/72
gross profit margin = 0.3333 or 33.33%