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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.
Once you have decided on the retail pricing of your products, compare the sales prices with the wholesale costs to determine your expected profit margin. Profit margin can be listed both in dollar terms and as a percentage. For example, a product will sell for $25 each and your wholesale cost is $10.The profit margin will be $15 per sale. As a percentage, the profit margin is 15 divided by 25, or 60 percent. Profit margin is always calculated from the retail price and is the money coming in to run your business.s a percentage, the profit margin is 15 divided by 25, or 60 percent. Profit margin is always calculated from the retail price and is the money coming in to run your business.