Question

Walter White is a pharmaceutical distributor. Walter takes a cost-based approach to pricing his products by tripling his price for each of his products. For example, products that Walter imports from Mexico for $2, he sells for $6. What is Walter's sales margin?

Answer 1

4$

Step-by-step explanation:

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Answer 2

$ 4

Step-by-step explanation:

Sales margin is the amount of profit derived from the sale of a unit of commodity. In this case, Walter uses a 200% mark up on cost price to arrive at his sales margin of $ 4.

The mark up is obtained from the steps below:

(selling price - cost price)/ cost price

(6-2)/2 = 200%