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Ytd profit is 14426100. Margin is 31.5. If we sell 500,000 at a 5% margin, how will this affect the margin.

Ytd profit is 14426100. Margin is 31.5. If we sell 500,000 at a 5% margin, how will this affect the margin for the year so far. 
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1 Answer

First find your total sales based on a profit of $14,426,100 and a 31.5% margin, which becomes 
 
14,426,100/0.315=$45,797,142.90
 
Add your additional sales of $500,000 to this number giving you
 
45,797,142.90 + 500,000 = $46,297,142.90
 
Find your total profit by adding the given profit of $14,426,100 to the profit from your new sales given by 
 
Total Profit = 14,426,100 + 500,000*0.05 = $14,451,100
 
Take your profit and divide it by your total income to find the new margin giving, 
 
14,451,100/46,297,142.90 = 31.2% Margin