Simple % problem

Discussion in 'Other Advanced Math' started by Garth Vader, May 10, 2022.

  1. Garth Vader

    Garth Vader

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    This will seem super easy to people with good maths brains but I am failing to make sense of it.

    I am simply trying to figure out sales profit shown as percentage.
    An example from the image attached:
    Manganese Alloy costs $35200 to produce and sells for $269100, resulting in a profit of $233900
    I have tried 2 formulas to try determine what percent the profit is:
    || 233900 / 269100 x 100 = 86.9 but does 86.9 represent the profit?
    || 269100 / 35200 x 100 = 764.5

    My great confusion comes in when I try, as a hypothetical test, to sell for the same cost as production ($35200 sold for $35200). This is obviously a profit of zero but comes out as 100%, I know 35200 is 100% of 35200 but Im trying to derive the sales profit and not the value of one figure against another.
    As you can see Im getting myself twisted in a knot.

    Thank you for your help.
     

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    Garth Vader, May 10, 2022
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  2. Garth Vader

    MathLover1

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    the formula to find the profit percentage is:

    Profit Percentage = Net Profit / Cost
    Net profit = Total Revenue - Total Expenses
    Revenue = Selling Price


    Manganese Alloy costs $35200 to produce and sells for $269100, resulting in a profit of $233900
    Cost=$35200
    Total Revenue=$269100
    Net profit =$269100-$35200=$233900

    Net Profit Margin =233900 / 269100 x 100 = 86.9%
    Profit Percentage =(233900/35200)=664.49%

    Answer:
    Net Profit Margin: 86.92%
    Net Profit: $233,900.00
    Profit Percentage: 664.49%
     
    MathLover1, May 10, 2022
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  3. Garth Vader

    nycmathguy

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    Wow! What math course is this? Is this really considered advanced mathematics? I had no idea that you also know business math.
     
    nycmathguy, May 11, 2022
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  4. Garth Vader

    MathLover1

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    financial math, might be accounting or economics
     
    MathLover1, May 11, 2022
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  5. Garth Vader

    nycmathguy

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    This is not your specialty. Nonetheless, you were able to find a solution. This is fascinating to me. You dit not major in finance math or economics..
     
    nycmathguy, May 11, 2022
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  6. Garth Vader

    Garth Vader

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    My apologies guys, it should have been under Basic Math, I don't know how I over looked that.
    Thank you for your help, I really appreciate it.
     
    Garth Vader, May 11, 2022
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  7. Garth Vader

    nycmathguy

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    No problem.
     
    nycmathguy, May 11, 2022
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  8. Garth Vader

    MathLover1

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    no need for apology
    actually Revenue, Cost, and Profit Functions are part of
    Finite Math
     
    MathLover1, May 11, 2022
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