A math problem...

[Papa Deuce]

If you buy something for $1.93... and then sell it for $5.56, what percentage is your gain? How do you figure it out?

Thanks.

 

[AKL_Megs]

Well, you'd make $3.36.

From there, you've got me. Good luck with that one!

 

[DrCavin]

(Sales - Cost)/ Sales = (5.56 - 1.93)/5.56 = .6528 or 65.28%

*Edit* My formula is for gross profit margin, Ashley's is the markup percentage

http://www.wikicfo.com/Wiki/default.aspx?Page=Margin+vs+Markup&AspxAutoDetectCookieSupport=1

 

[AshleyW]

5.56-1.93=3.63

Then:

3.63/1.93=1.88, or 188%

 

[AshleyW]

(Sales - Cost)/ Sales = (5.56 - 1.93)/5.56 = .6528 or 65.28%

I think you divide by cost, not sales. If it cost 1.93 and you sold for 5.56, the profit is 3.63, which is more than 1.93 so your % should be more than 100.

 

[bgirldeb]

5.56-1.93=3.63

Then:

3.63/1.93=1.88, or 188%

this is right!
http://www.investopedia.com/ask/answers/03/100303.asp

 

[Geoff_M]

Both numbers are right, but they're answering different questions.

 

[Papa Deuce]

Thanks.... Ashley answered what I was trying to get at...