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3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case in which sales equal 30,000 units.
Sales of new automobiles, for example, typically feature a 1 percent or 2 percent profit margin; because the retail price of automobiles is high, a large profit margin would make them too expensive for many consumers. Additionally, a 1 percent margin on a $50,000 purchase yields a $500 profit.pecialty retailers and general merchandisers -- department stores -- were the most profitable sector of the retail economy in 2009, according to Fortunemagazine, with a 3.2 percent average profit margin. Food and drug stores operated on a 1.5 percent margin.