Enter the total sales per item ($) and the cost per item ($) into the Profit Margin on Sales Calculator. The calculator will evaluate and display the Profit Margin on Sales.
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Profit Margin on Sales Formula
The following formula is used to calculate the Profit Margin on Sales.
PMoS = (S-C) / (S) * 100
- Where PMoS is the Profit Margin on Sales (%)
- S is the total sales per item ($)
- C is the cost per item ($)
How to Calculate Profit Margin on Sales?
The following example problems outline how to calculate Profit Margin on Sales.
Example Problem #1:
- First, determine the total sales per item ($).
- The total sales per item ($) is given as: 25.
- Next, determine the cost per item ($).
- The cost per item ($) is provided as: 5.
- Finally, calculate the Profit Margin on Sales using the equation above:
PMoS = (S-C) / (S) * 100 = (%)
The values given above are inserted into the equation below:
PMoS = (25-5) / (25) * 100 = 80 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
total sales per item ($) = 70
cost per item ($) = 5
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
PMoS = (S-C) / (S) * 100 = ?
