Question

A report was given to you by one of your interns, Greta, that contains the following information: Current statusMaximizing profits given current costs and demand Price charged$142 Cost per unit to produce, total$43 Cost per unit to produce, variable$15 Marginal cost of last unit produced$17 What is your current profit margin

Answer 1

47.18%

Step-by-step explanation:

Revenue generated = $142

Total cost = $75 [$43+$15+$17]

Current profit margin = (Revenue - Cost) / Revenue * 100

Current profit margin = ($142 - $75) / $142 * 100

Current profit margin = $67/$142 * 100

Current profit margin = 0.471830986 * 100

Current profit margin = 47.18%