Question

If the unit margin is $300 and the variable cost per unit

sold in dollars is $500, what is the Percent margin?

Answer 1

The percent margin is calculated by dividing the unit margin by the sales price per unit and multiplying by 100. Given a unit margin of $300 and a variable cost per unit of $500, the sales price per unit is $800, resulting in a percent margin of 37.5%.

Step-by-step explanation:

The question is related to calculating the percentage margin when given the unit margin and the variable cost per unit. To find the percent margin,

we must compare the unit margin to the sales price per unit. The formula for percent margin is (Unit Margin / Sales Price per Unit) × 100.

However, the sales price per unit is not given directly in this problem. Nonetheless, we can infer the sales price per unit by adding the unit margin of $300 to the variable cost per unit of $500,

which results in a sales price per unit of $800.

Therefore, the percent margin is ($300 / $800) × 100, which equals 37.5%.