Business Studies: Formalae

A set of revision cards to aid you with your formalae in the business studies exams.

HideShow resource information

Profitability

How do you calculate Profit Margin?

Operating Profit Margin = Operating Profit / Sales revenue.

How is Profit Margin expressed?

Profit Margin is expressed as a PERCENTAGE.

e.g.

Sales Rev = £25,892
Total Costs = £12,453
 
Rev - Costs = Profit       £25,892 - £12,453 = £13,439

Profit/Rev=Profit Margin   (13,439 / 25,892) x100 = 51.9% (rounded to 1 d.p.)

Profit Margin = 51.9%

1 of 1

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »