Question

Gadget mania incorporated sells its new quadruple echo microphone for $15. If the company makes a $6 profit on the sale of each microphone, what is its to fit margin?

Answer 1

40%

Explanation:

The profit margin is given by the gross profit divided by total sales.

In this case, Gadget mania has a gross profit of $6 per microphone, while each microphone sells for $15.

Therefore, the profit margin is:

`P=(6)/(15)\\P=0.4=(40)/(100)= 40\%`

Gadget Mania's profit margin is 40%.