Profit / Markup question.

[BanginJimmy]

Profit margin would be a 100%.

not really, to figure profit margin you have to subtract the costs of doing business also. How much did it cost to get the vehicle there, how much commission is paid to the salesman, that aprticular vehicles share of the electic bill and so on.

My best guess is that profit magin would be right around 70% in this particular sale.

[ironchef]

not really, to figure profit margin you have to subtract the costs of doing business also. How much did it cost to get the vehicle there, how much commission is paid to the salesman, that aprticular vehicles share of the electic bill and so on.

My best guess is that profit magin would be right around 70% in this particular sale.

These kinds of variables weren't presented in the original question, thus the profit margin is still 100%.

[BUGMAN]

Yes it is 100%. The guy was a friend so there was no salesman involved and being a cash deal.

You were presented with the proper information on this transaction.

But he does have a point in a lot of cases. Man do I know that scenario too well.

[ironchef]

Yes it is 100%. The guy was a friend so there was no salesman involved and being a cash deal.

You were presented with the proper information on this transaction.

But he does have a point in a lot of cases. Man do I know that scenario too well.

No doubt, just not in this particular situation.