Katherine runs her own pizza shop. For each pizza, it costs her $2.21 for ingredients, $1.24 for overhead, and $0.47 for mailing flyers.What is the profit earned by Katherine as a percentage of her...
Katherine runs her own pizza shop. For each pizza, it costs her $2.21 for ingredients, $1.24 for overhead, and $0.47 for mailing flyers.
What is the profit earned by Katherine as a percentage of her costs, if each pizza is sold for $5.84?
First we will calculate the cost for the pizza.
The cost of ingredients = 2.21
overhead cost = 1.24
mailing fliers = 0.47
Then the total cost of the pizza = 2.21 + 0.47 + 1.24 = 3.92 dollars.
Now we will calculate the profit.
The profit = selling price - cost
Given that the selling price = 5.84
==> The profit = 5.84 - 3.92 = 1.92
Now we will calculate the percentage of the profit = profit/ cost *100%
==> profit percentage = 1.92/ 3.92 * 100% = 48.98%
Then the profit is 48.98%
The total costs to make a pizza are $2.21 for ingredients, $1.24 for overhead and $0.47 for mailing flyers.
Adding the three we get 2.21 + 1.24 + 0.47 = 3.92
The pizza are sold for $5.84
The profit she makes is $5.84 - $3.92 = 1.92
As a percentage of the costs this is (1.92 / 3.92)*100 = 48.97%
The profit made by Katherine as a percentage of the costs is 48.97%
Okay so the cost of producing the product and advertising will be...
$2.21 + $1.24 + $0.47 = $3.92
Katherine then sales each pizza for $5.84
Now you would subtract the amount it took the amount it took make the product from the sale price...
$5.84 - $3.92 = $1.92 In dollar amount 1.92 is the dollar amount of profit that she gets for each pizza.
$1.92 /$3.92= 0.4898 x 100 = 49%(rounded) Now in order to get the percentage divide $1.92 by $5.84 then multiply by a hundred to get your percentage.