Question

You own a coffee shop where a cup of coffee costs $2.10. Your cost on the cup of coffee is $0.30. Calculate the margin per cup of coffee.

Answer 1

Your margin would be 70%

Answer 2

Here are the calculations for computing the margin.

Price of the Coffee Cup= $2.10

Cost on the Coffe Cup= $0.30

Net Profit = $2.10 - $ 0.30 = $1.8

Now to Calculate the Margin we need to do the following calculation:

Profit/Price of the Coffee Cup= ($1.8 / $2.10) * 100= 85% Approximately.