Compute the following:
Imagine that you sell shoes amounting to 123 pesos, and the quantity that is sold is 20. How much sale do you get?
⚫ How much is the revenue if your sale is 1,432.00 and the company's expenses amount to 324.00?
• What will be the profit margin if the revenue is 345.00 and the sale is 1,500.00?
To compute the total sales, you multiply the price per item by the quantity sold. In this case, the price per item is 123 pesos, and the quantity sold is 20.
Total sales = Price per item * Quantity sold
Total sales = 123 pesos * 20
Total sales = 2,460 pesos
Therefore, you will get a sale of 2,460 pesos.
To calculate the revenue, you subtract the expenses from the total sales.
Revenue = Total sales - Expenses
Revenue = 1,432 pesos - 324 pesos
Revenue = 1,108 pesos
Therefore, the revenue is 1,108 pesos.
To calculate the profit margin, you divide the profit by the revenue and multiply by 100 to get it as a percentage.
Profit margin = (Profit / Revenue) * 100
Profit margin = (345 pesos / 1,500 pesos) * 100
Profit margin = 0.23 * 100
Profit margin = 23%
Therefore, the profit margin is 23%.
To compute the sale in the first scenario, you can multiply the price of each shoe by the quantity sold (20).
123 pesos x 20 shoes = 2,460 pesos
Therefore, the sale you would get is 2,460 pesos.
To calculate the revenue in the second scenario, you simply subtract the expenses from the sale.
Revenue = Sale - Expenses
Therefore, the revenue in this case would be:
1,432 pesos - 324 pesos = 1,108 pesos
Finally, to determine the profit margin in the third scenario, you can divide the profit (revenue minus sale) by the revenue and multiply by 100 to get a percentage.
Profit = Revenue - Sale
Profit Margin = (Profit / Revenue) * 100
In this case, the profit would be:
345 pesos - 1,500 pesos = -1,155 pesos
And the profit margin calculation would be:
((-1,155 pesos) / 1,500 pesos) * 100 ≈ -77%
To compute the sale in the first scenario:
To find the amount of sale, you multiply the price per item by the quantity sold. In this case, the price per item is 123 pesos, and the quantity sold is 20.
So, the sale can be calculated as follows:
Sale = Price per item * Quantity sold
Sale = 123 pesos * 20
Therefore, the sale in this scenario would be 2,460 pesos.
To compute the revenue in the second scenario:
Revenue is the total income generated by a company from its sales. To calculate revenue, you simply add up all the sales.
In this case, the revenue is given as 1,432 pesos, and the expenses of the company are given as 324 pesos.
So, the revenue can be calculated as follows:
Revenue = Sale - Expenses
Revenue = 1,432 pesos - 324 pesos
Therefore, the revenue in this scenario would be 1,108 pesos.
To compute the profit margin in the third scenario:
The profit margin is the ratio of profit to revenue, expressed as a percentage. To calculate the profit margin, you divide the profit by the revenue and then multiply by 100 to get the percentage.
In this case, the revenue is given as 1,500 pesos, and the profit is given as 345 pesos.
So, the profit margin can be calculated as follows:
Profit Margin = (Profit / Revenue) * 100
Profit Margin = (345 pesos / 1,500 pesos) * 100
Therefore, the profit margin in this scenario would be approximately 23%.