Following Is The Calculation We Did in Order To Find The Profit Margin and Costs Incurred in Each Case
We calculated profit margin and costs by analyzing the following: Total revenue was $100,000 from product sales. Total costs were $60,000, which included $40,000 in fixed costs and $20,000 in variable costs. This resulted in a profit of $40,000 and a profit margin of 40% ($40,000 profit / $100,000 total revenue).