Profit margin practice

What you will practise

Margin divides profit by selling price. To price from a target margin, divide cost by one minus that margin.

(selling_price - cost) / selling_price

The syntax above is a guide. Read the data and each task to choose the right arguments for your formula.

3 exercises in this lesson

1. Exercise 1 · answer in E10

   Calculate item A's gross margin from its price C2 and cost D2.

2. Exercise 2 · answer in E10

   Calculate the price required for cost D2 and target margin E6.

3. Exercise 3 · answer in E10

   Calculate order-wide margin using extended sales and extended costs across rows 2 to 4.

Before you check your answer

• Keep the source data intact. Write your answer in the highlighted result cell. Changing a source value changes the question instead of solving it.
• Use the requested cells. Check the first and last row of a range and read its column heading. A plausible total can still come from the wrong data.
• Reference values that can change. A fixed number may match today's sheet. A cell reference keeps the formula connected when the source values change.

How the answer is checked

The workbook evaluates your formula against the requested result. It also checks the skill being practised and tests the formula with changed source data, so a fixed answer that happens to match is not enough.

Use progressive hints when you need help, then try the task again with fresh data. Correctly solving a step opens the next exercise.