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.
First find your total sales based on a profit of $14,426,100 and a 31.5% margin, which becomes
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