This calculator determines the profit margin % of a product when both cost and price are known.
Calculating profit margin % is a useful tool in making business decisions and is common in the food industry.
Profit margin % is defined as gross profit expressed as a percentage of selling price. It is calculated by dividing gross profit (price - cost) by price.
Profit margin % calculations are useful when analyzing profitablity of two or more products when their costs and/or prices differ. That's because the results are reported as a percentage rather than in raw numbers.
To use this calculator, enter the cost and price of the food product.
Then press the [Calculate] button.
The calculated profit margin % will appear in the space labeled "Margin %".
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Explanation:
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