Free practice · numeric · hard
Practice
Calculate a weighted average price
A business sells 20 units at 10 each and 30 units at 15 each. What is the average selling price per unit?
Profitability bridge
Trace quantities through revenue, cost, profit, and ratio
- Revenue
- Units × selling price
- Direct cost
- Units × defined direct unit cost
- Gross profit
- Revenue − direct cost
- Margin
- Gross profit ÷ revenue
- Markup
- Gross profit ÷ cost
Margin and markup use the same profit numerator but different denominators. Keeping that bridge visible prevents a plausible but mislabeled percentage.