0.4 is the ratio of gross profit to revenue: $20/$50 = 0.4. In percentage terms, we get 40% by multiplying 0.4 by 100. The selling price is equal to the cost price plus profit. The selling price is ...

A company's profit margin is calculated by dividing a company's net income by its total revenues and is expressed as a percentage. Most investors view a higher profit margin as more desirable ...