Calculate profit Margin

Question

A website sells only one model of shoes, with acquisition cost of $18 for a pair of shoes. the site adds $9 of costs to determine the price at which to sell the shoes.

 

What profit margin(%) does the site obtain, assuming it has no additional costs ?

Answer 1

Given a website with absolutely no costs other than the purchase

of the shoes it sells ... completely unrealistic ... ...

 

Shoes cost:  $18

Sell price:    $27

 

18x = 27

x = 1.5 = 150%

 

The profit margin is 50% because they sell the shoes for half again

what they pay for them.