The profit margin on the sale of a good is 20 percent,and the selling price of the good is $5,000.Calculate the cost of the good.

Question

Quizplus · Accepted Answer

The profit margin is the profit as a percentage of the selling price. So, if the selling price is $5,000 and the profit margin is 20%, the profit is 20% of $5,000, which is $1,000. Therefore, the cost of the good is the selling price minus the profit, which is $5,000 - $1,000 = $4,000.

The Profit Margin on the Sale of a Good Is