Armed Forces Classification Test (AFCT) Arithmetic Reasoning Practice Test 2025 - Free AFCT Practice Questions and Study Guide

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Question: 1 / 400

If a product is sold for $250 and costs $175, what is the profit margin?

20%

25%

To determine the profit margin, you first need to find the profit made on the product. The profit is calculated by subtracting the cost from the selling price:

Profit = Selling Price - Cost

Profit = $250 - $175

Profit = $75

Next, to find the profit margin, which is expressed as a percentage, you divide the profit by the selling price and then multiply by 100:

Profit Margin = (Profit / Selling Price) × 100

Profit Margin = ($75 / $250) × 100

Profit Margin = 0.30 × 100

Profit Margin = 30%

Therefore, the profit margin for this product is 30%. This means that for every dollar the product is sold for, 30 cents represents profit after covering costs.

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30%

40%

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