Final answer:
When a product is priced at three times the cost of production, the percentage margin on the product is approximately 66.67%.
Step-by-step explanation:
The question revolves around the concept of price setting and profit margin calculation in a business context. If a product is priced at 3 times the cost of production, the gross profit margin is calculated by subtracting the cost from the selling price, then dividing by the selling price. Here's the calculation:
Profit margin = (Selling Price - Cost) / Selling Price
Given that Selling Price = 3 × Cost, then:
Profit Margin = (3 × Cost - Cost) / (3 × Cost)
Profit Margin = (2 × Cost) / (3 × Cost)
Profit Margin = 2/3 or approximately 66.67%
Hence, the percentage margin on the product is about 66.67%.