Welcome to this article on exercises on business calculations and more specifically on BTS MCO exercises. Here you will find no less than 11 detailed corrected management exercises on commercial calculations for Operational Management.
At the end of this article, you will know how to solve BTS MCO Management exercises in business calculations without any worries.
In this section:
- Application: Biofoods Company
- Application: FunTechStore
- Application: The Salmon House
- Application: RestoMarket Supermarket
- Application: Gourmet Delights Company
- Application: Margot's Hats
- Application: Atlantic Delights
- Application: ElectroShop Company
- Application: TECHINOV Company
- Application: TechShop
- Application: TechnoPlus Company
Application: Biofoods Company
States :
The company Biofoods is a store specializing in the sale of organic products. It purchased a batch of 500 jars of organic honey at a purchase price excluding tax (PA HT) of €3,00 per unit. It resells it at a sale price excluding tax (PV HT) of €5,00 per unit. The VAT rates applied are 20% for the sale and 5,5% for the purchase.
Work to do :
1. What is the amount of the overall gross margin achieved by the Biofoods company?
2. Calculate Biofoods' margin rate on these products.
3. Calculate the Biofoods markup rate on these products.
4. Calculate the total amount of the lot purchased by Biofoods, including taxes.
5. Calculate the total amount of the lot sold by Biofoods, taxes included.
Proposed correction:
1. The overall gross margin is obtained by multiplying the unit margin by the quantity sold. Here, the unit margin is €5,00 – €3,00 = €2,00 and the quantity sold is 500. So the overall margin is €2,00 x 500 = €1.
2. The margin rate is obtained by subtracting the purchase price excluding VAT from the sale price excluding VAT, divided by the purchase price excluding VAT and multiplied by 100. Here, this gives ((€5,00 – €3,00) ÷ €3,00) x 100 = 66,67%.
3. The markup rate is obtained by subtracting the purchase price excluding VAT from the sale price excluding VAT, divided by the sale price excluding VAT and multiplied by 100. Here, this gives ((€5,00 – €3,00) ÷ €5,00) x 100 = 40,00%.
4. The total amount of the lot purchased, including taxes, is obtained by adding VAT to the purchase. Here, this gives €3,00 x 1,055 x 500 = €1.
5. The total amount of the lot sold, including taxes, is obtained by adding VAT to the sale. Here, this gives €5,00 x 1,20 x 500 = €3.
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| Overall gross margin | Unit margin x quantity sold |
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT) x 100 |
| Total amount purchased, including VAT | PA HT x (1 + VAT rate) x quantity |
| Total amount sold, including VAT | PV HT x (1 + VAT rate) x quantity |
Application: FunTechStore
States :
FunTechStore is a tech store. It buys drones for €80 each excluding tax and sells them for €110 each excluding tax. In April, FunTechStore sold 150 drones.
It is necessary to note that in this exercise, there is a VAT rate of 20%.
Work to do :
1. What is the unit margin on each drone sold?
2. What is the overall margin for the month of April?
3. What is the margin rate on each drone sold?
4. What is the markup rate on each drone sold?
5. What is the total amount of VAT collected on drone sales in April?
Proposed correction:
1. The unit margin is the difference between the selling price excluding tax and the purchasing price excluding tax. Therefore, unit margin = PV excluding tax – PA excluding tax = €110 – €80 = €30.
2. The overall margin is the unit margin multiplied by the quantity sold. So Overall margin = Unit margin x Quantity sold = €30 x 150 = €4500.
3. The margin rate is the difference between the sales price excluding tax and the purchase price excluding tax, divided by the purchase price excluding tax, and multiplied by 100. Therefore Margin Rate = ((PV HT – PA HT) ÷ PA HT) x 100 = ((110 € – 80 €) ÷ 80 €) x 100 = 37,5%.
4. The markup rate is the difference between the sales price excluding tax and the purchase price excluding tax, divided by the sales price excluding tax, and multiplied by 100. Therefore Markup Rate = ((PV HT – PA HT) ÷ PV HT) x 100 = ((110 € – 80 €) ÷ 110 €) x 100 = 27,27%.
5. The VAT collected is the total amount of sales excluding tax multiplied by the VAT rate. Therefore Total VAT amount = Total sales excluding tax x VAT rate = (€110 x €150) x 20% = €3300.
Summary of Formulas Used:
| Packages | Explanation |
|---|---|
| Unit margin = PV excluding tax – PA excluding tax | This is the difference between the sales price excluding tax (PV HT) and the purchase price excluding tax (PA HT). |
| Overall Margin = Unit Margin x Quantity Sold | It is the product of the unit margin and the quantity sold. |
| Margin Rate = ((PV HT – PA HT) ÷ PA HT) x 100 | This is the percentage of the unit margin on the purchase price excluding taxes. |
| Mark Rate = ((PV HT – PA HT) ÷ PV HT) x 100 | This is the percentage of the unit margin on the sales price excluding tax. |
| Total VAT amount = Total sales excluding VAT x VAT rate | This is the total amount of sales excluding tax multiplied by the VAT rate. |
Application: The Salmon House
States :
La Maison du Saumon is a restaurant specializing in seafood products, located in the city center of Lille. The manager wants to evaluate the financial performance of his restaurant using several key management indicators. Here is some data on his transactions:
– Purchase price excluding tax (PA HT) of Salmon: €15
– Sale price excluding tax (PV HT) of Salmon: €30
– Quantity of salmon sold: 200
– Applicable VAT rate: 20%
Work to do :
1. Calculate the unit margin on salmon.
2. Calculate the overall margin.
3. Calculate the margin rate.
4. Calculate the mark rate.
5. Calculate the selling price including tax of the Salmon.
Proposed correction:
1. The unit margin is the difference between the PV HT and the PA HT. Therefore, Unit margin = PV HT – PA HT = €30 – €15 = €15.
2. The overall margin is obtained by multiplying the unit margin by the quantity sold. Thus, Overall margin = Unit margin x quantity sold = €15 x 200 = €3.
3. The margin rate is calculated by subtracting the HT PA from the HT PV, divided by the HT PA and multiplied by 100. Therefore, Margin rate = ((HT PV – HT PA) ÷ HT PA) x 100 = ((€30 – €15) ÷ €15) x 100 = 100%.
4. The markup rate is calculated by subtracting the HT PA from the HT PV, divided by the HT PV and multiplied by 100. Thus, Markup rate = ((HT PV – HT PA) ÷ HT PV) x 100 = ((€30 – €15) ÷ €30) x 100 = 50%.
5. Finally, the sales price including tax is obtained by adding the VAT (calculated by multiplying the PV excluding tax by the VAT rate) to the PV excluding tax. PV including tax = PV excluding tax + (PV excluding tax x VAT rate) = €30 + (€30 x 20/100) = €36.
Summary of Formulas Used:
| Packages | Calculs |
|---|---|
| Unit margin | PV HT – PA HT |
| Overall margin | Unit margin x quantity sold |
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT) x 100 |
| Sales price including tax | PV excluding VAT + (PV excluding VAT x VAT rate) |
Application: RestoMarket Supermarket
States :
RestoMarket is a supermarket that sells food products. For example, it sells rice at a tax-free purchase price (TPP) of €2 per kg. The VAT rate applied to this product is 5,5%.
RestoMarket decides to sell the rice at the sales price excluding tax (SRP) of €3,20 per kg, and discovers that in total, they sold 150 kg of rice last month.
Work to do :
Question 1:
Calculate the margin rate on rice sold by RestoMarket.
Question 2:
Calculate the markup rate on rice sold by RestoMarket.
Question 3:
Calculate the overall margin generated by the sale of rice at RestoMarket using the margin rate.
Question 4:
Calculate the selling price including all taxes (PV TTC) of the rice.
Question 5:
Calculate the total amount of VAT collected on the sale of rice.
Proposed correction:
Question 1:
The margin rate is calculated using the formula: ((PV HT – PA HT) ÷ PA HT) x 100 = ((€3,20 – €2,00) ÷ €2,00) x 100 = 60%.
Question 2:
The markup rate is calculated using the formula: ((PV HT – PA HT) ÷ PV HT) x 100 = ((€3,20 – €2,00) ÷ €3,20) x 100 = 37,50%.
Question 3:
The overall margin is calculated using the formula: Unit margin x quantity sold = (PV HT – PA HT) x quantity sold = (€3,20 – €2,00) x 150 = €180.
Question 4:
The PV including tax is calculated using the formula: PV excluding tax x (1 + VAT rate/100) = €3,20 x (1 + 5,5/100) = €3,376.
Question 5:
The total amount of VAT collected is calculated using the formula: VAT incl. – VAT excl. = €3,376 – €3,20 = €0,176 per kg, i.e. €0,176 x 150 = €26,40 for the total 150 kg of rice sold.
Summary of Formulas Used:
| Formulas | Details |
|---|---|
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT) x 100 |
| Overall margin | Unit margin x quantity sold |
| Sales price including tax | PV excluding VAT x (1 + VAT rate/100) |
| VAT amount | PV including VAT – PV excluding VAT |
Application: Gourmet Delights Company
States :
The company Gourmet Delights is a company specializing in the sale of high-end gourmet products. It buys a type of cheese from the producer at a purchase price excluding tax of €10 per piece. It sells this cheese to its customers at €15 excluding tax per piece.
Over a three-month period, the company sold 5000 pieces of this cheese. Fixed costs over this period were €20 and unit variable costs were €000 per piece.
The applicable VAT rate is 20%.
Work to do :
1. Calculate the unit margin and the overall margin over this period.
2. Deduce the margin rate and the markup rate.
3. Determine the operating result for this period.
4. Calculate the break-even point in quantity.
5. Evaluate the impact of a 10% increase in unit variable cost on the break-even point.
Proposed correction:
1. The unit margin is calculated by subtracting the pre-tax purchase price from the pre-tax sale price, i.e.: €15 – €10 = €5. The overall margin is obtained by multiplying the unit margin by the quantity sold, i.e. €5 x 5000 = €25.
2. The margin rate is (Unit margin ÷ Purchase price excluding tax) x 100 or (€5 ÷ €10) x 100 = 50%. The markup rate is (Unit margin ÷ Sale price excluding tax) x 100 or (€5 ÷ €15) x 100 = 33,33%.
3. The turnover is the selling price excluding tax x quantity sold, i.e. €15 x 5000 = €75. The total variable cost is the unit variable cost x quantity sold, i.e. €000 x 5 = €5000. The operating result is therefore turnover – (fixed costs + variable costs), i.e. €25 – (€000 + €75) = €000.
4. The break-even point in quantity is the fixed costs divided by the unit margin, i.e. €20 ÷ €000 = 5 units.
5. If the unit variable cost increases by 10%, it becomes €5 + 10% = €5,5. The unit margin then falls to €15 – €5,5 = €9,5. The break-even point becomes €20 ÷ €000 = approximately 9,5 units.
Summary of Formulas Used:
| Concept | Formulas |
|---|---|
| Unit margin | Sales price excluding tax – Purchase price excluding tax |
| Overall margin | Unit margin x Quantity sold |
| Margin rate | ((Selling price excluding tax – Purchase price excluding tax) ÷ Purchase price excluding tax) x 100 |
| Brand taxes | ((Sales price excluding tax – Purchase price excluding tax) ÷ Sales price excluding tax) x 100 |
| Operating result | Revenue – (Fixed costs + Variable costs) |
| Break-even point in quantity | Fixed costs ÷ Unit margin |
Application: Margot's Hats
States :
Les Chapeaux de Margot is a company that sells hats of different sizes, shapes and materials. The best-selling hat is the "Panama Hat" which costs €15 excluding VAT to buy and sells for €30 excluding VAT. The VAT on hats is 20%.
Work to do :
1. Calculate the unit margin of the Panama Hat.
2. How much is the VAT on a Panama Hat?
3. If the company sold 100 units of the Panama Hat, what is the overall margin?
4. Calculate margin rate and brand rate.
5. If the company decides to increase the Selling Price excluding VAT to €35, calculate the new unit margin, the new margin rate and the new markup rate.
Proposed correction:
1. Unit Margin = PV HT – PA HT = €30 – €15 = €15.
2. The amount of VAT = PV excluding VAT x VAT rate = €30 x 20% = €6.
3. Overall Margin = Unit Margin x Quantity Sold = €15 x 100 = €1500.
4. The margin rate ((PV HT – PA HT) ÷ PA HT) x 100 = ((30 € – 15 €) ÷ 15 €) x 100 = 100%.
The markup rate ((PV HT – PA HT) ÷ PV HT) x 100 = ((30 € – 15 €) ÷ 30 €) x 100 = 50%.
5. The new unit margin = New PV HT – PA HT = €35 – €15 = €20.
The new margin rate = ((New PV HT – PA HT) ÷ PA HT) x 100 = ((€35 – €15) / €15) x 100 = 133,33%.
The new markup rate = ((New PV HT – PA HT) ÷ New PV HT) x 100 = ((€35 – €15) / €35) x 100 = 57,14%.
Summary of Formulas Used:
| Formulas | Explanation |
|---|---|
| VAT rate = 20% | 5,5% | The VAT rate used is either 20% or 5,5%, depending on the type of product or service. |
| Unit margin = PV excluding tax – PA excluding tax | The unit margin is the difference between the selling price excluding VAT of a product and its purchase price excluding VAT. |
| Overall margin = Unit margin x quantity sold | The overall margin is the product of the unit margin and the quantity sold. |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 | The margin rate is the percentage of profit made on each euro spent on the purchase of a product. |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 | The markup rate is the percentage of profit made on each euro received from the sale of a product. |
Application: Atlantic Delights
States :
Les délices de l'Atlantique is a company specializing in the sale of seafood products. It wants to evaluate its financial performance on the sale of one of its product lines – oysters. Here is some information:
– Purchase price excluding tax (PA HT) of oysters: €2,50 per unit
– Sales price excluding tax (PV HT) of oysters: €4,00 per unit
– Quantity sold: 5 units
– VAT applied: 20%
Work to do :
1. Calculate the VAT amount.
2. Calculate the unit margin and the overall margin.
3. Calculate margin rate and brand rate.
4. Assuming that the quantity sold increases by 10%, calculate the new overall margin.
5. What would be the new selling price to maintain the same margin rate if the purchase price increases by 10%?
Proposed correction:
1. VAT amount = PV excluding VAT x VAT rate = €4,00 x 20% = €0,80.
2. Unit margin = PV HT – PA HT = €4,00 – €2,50 = €1,50. Overall margin = Unit margin x quantity sold = €1,50 x 5000 = €7.
3. Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100 = ((€4,00 – €2,50) ÷ €2,50) x 100 = 60%. Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100 = ((€4,00 – €2,50) ÷ €4,00) x 100 = 37,5%.
4. If the quantity sold increases by 10%, the new quantity sold will be 5000 x 1,10 = 5500. Thus, the new overall margin would be €1,50 x 5500 = €8.
5. If the purchase price increases by 10%, the new purchase price would be €2,50 x 1,10 = €2,75. To maintain the same margin rate of 60%, the new selling price (PV HT) should be calculated using the margin rate formula, i.e. PV HT = (PA HT x (1 + Margin rate / 100)). This gives PV HT = €2,75 x (1 + 60 / 100) = €4,40.
Summary of Formulas Used:
| BUILD YOUR VIRTUAL TOUR | Description |
|---|---|
| VAT rate = 20% | 5,5% | Used to calculate Value Added Tax (VAT) |
| Overall margin = Unit margin x quantity sold | Used to calculate the overall profit margin on product sales |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) | Used to calculate the profit rate on product sales |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100) | Used to calculate the markup rate on product sales |
Application: ElectroShop Company
States :
The company ElectroShop is a company selling household appliances and electronic products. ElectroShop made a purchase of 500 televisions at €200 each and sold all of these televisions. The purchase costs were €7500 for logistics and €5000 for purchasing costs.
The sales price excluding tax (HT) of each television is €300. VAT is 20%.
The company wants to take stock of this operation and evaluate the performance based on the overall margin, the margin rate and the markup rate.
Work to do :
1. Calculate the total and unit purchase price excluding tax (PA HT).
2. Calculate the selling price including tax per television.
3. Calculate the overall margin in euros.
4. Calculate the margin rate.
5. Calculate the mark rate.
Proposed correction:
1. The total HT PA is the total cost of purchasing the televisions plus the logistics and purchasing costs, i.e. 500 x €200 + €7500 + €5000 = €107
The unitary PA HT is therefore €107 ÷ €500 = €500
2. The PV including tax of each television is the sale price excluding tax plus VAT, i.e. €300 + (€300 x 20%) = €360
3. The overall margin is the difference between the total PA HT and the total PV HT i.e. (500 x 300 €) – 107 € = 500 €
4. The margin rate is ((PV HT – PA HT) ÷ PA HT) x 100 or ((€300 – €215) ÷ €215) x 100 = 39,53%
5. The markup rate is ((PV HT – PA HT) ÷ PV HT) x 100 or ((€300 – €215) ÷ €300) x 100 = 28,33%
Summary of Formulas Used:
| Formulas | Description |
|---|---|
| PA HT = (Quantity x Unit PA HT) + Logistics costs + Purchasing costs | This formula gives the total purchase cost excluding taxes |
| PV including VAT = PV excluding VAT + (PV excluding VAT x VAT rate) | This formula gives the selling price including all taxes. |
| Overall margin = (Quantity x PV HT) – Total PA HT | This formula gives the overall margin in euros |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 | This formula gives the margin rate |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 | This formula gives the markup rate |
Application: TECHINOV Company
States :
The company TECHINOV is a distributor of electronic equipment. The company has purchased a batch of smartphones at a unit price of €200 excluding VAT (purchase price excluding tax). It plans to sell each smartphone for €400 excluding VAT (sale price excluding tax). Assume that the VAT rate applied is 20%.
Work to do :
1. Calculate the unit margin on the sale of a smartphone.
2. If the company sells 100 smartphones, what is the overall margin?
3. Calculate the margin rate.
4. Calculate the mark rate.
5. What will be the selling price including tax of each smartphone?
Proposed correction:
1. The unit margin is calculated by subtracting the purchase price excluding tax from the sale price excluding tax.
Unit margin = PV excluding tax – PA excluding tax = €400 – €200 = €200.
2. The overall margin is obtained by multiplying the unit margin by the number of smartphones sold.
Overall margin = Unit margin x quantity sold = €200 x 100 = €20.
3. The margin rate is obtained by dividing the unit margin by the purchase price excluding taxes and then multiplying by 100.
Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100 = ((400 € – 200 €) ÷ 200 €) x 100 = 100%.
4. The markup rate is obtained by dividing the unit margin by the selling price excluding tax and then multiplying by 100.
Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100 = ((400 € – 200 €) ÷ 400 €) x 100 = 50%.
5. The sales price including tax is obtained by adding VAT (20% of the sales price excluding tax) to the sales price excluding tax.
Selling price including tax = PV excluding tax + VAT = €400 + (€400 x 20%) = €480.
Summary of Formulas Used:
| Formulas | Result |
| Unit margin = PV excluding tax – PA excluding tax | 200 € |
| Overall margin = Unit margin x quantity sold | 20 000 € |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100) | 100% |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100) | 50% |
| Selling price including tax = PV excluding tax + (PV excluding tax x VAT rate) | 480 € |
Application: TechShop
States :
TechShop is an electronics store that sells various products like phones, computers, accessories, etc. They sell a particular phone at a sales price excluding tax (SRP) of €250 and they buy the same phone at a purchase price excluding tax (PP) of €150. TechShop sold 100 units of this phone in a month.
Work to do :
1. What is TechShop's unit margin for this phone?
2. What is TechShop's overall margin for this month?
3. What is TechShop's markup for this phone?
4. What is TechShop's markup rate for this phone?
5. If the VAT rate is 20%, what will be the sales price including VAT of this phone?
Proposed correction:
1. The unit margin is calculated by subtracting the purchase price excluding tax from the sale price excluding tax. Therefore, Unit margin = PV excluding tax – PA excluding tax = €250 – €150 = €100
2. The overall margin is calculated by multiplying the unit margin by the quantity sold. Therefore, Overall margin = Unit margin x Quantity sold = €100 x 100 = €10
3. The margin rate is calculated by taking the difference between PV HT and PA HT, divided by PA HT, then multiplied by 100 to get the percentage. Therefore, Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100 = ((€250 – €150) ÷ €150) x 100 = 66,67%
4. The markup rate is calculated by taking the difference between PV HT and PA HT, divided by PV HT, then multiplied by 100 to get the percentage. Therefore, Markup rate = ((PV HT – PA HT) ÷ PV HT) x 100 = ((€250 – €150) ÷ €250) x 100 = 40%
5. The sales price including VAT is calculated by adding VAT (20% of the sales price excluding VAT) to the sales price excluding VAT. Therefore, Sales price including VAT = sales price excluding VAT + (20% of sales price excluding VAT) = €250 + (20% of €250) = €250 + €50 = €300.
Summary of Formulas Used:
| Formulas | Explanation |
|---|---|
| Unit margin = PV excluding tax – PA excluding tax | This formula is used to calculate the unit margin by subtracting the purchase price excluding tax from the sale price excluding tax. |
| Overall margin = Unit margin x Quantity sold | This formula is used to calculate the overall margin by multiplying the unit margin by the quantity sold. |
| Margin rate = ((PV excluding tax – PA excluding tax) ÷ PA excluding tax) x 100 | This formula is used to calculate the margin rate by taking the difference between PV HT and PA HT, divided by PA HT, then multiplied by 100. |
| Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 | This formula is used to calculate the markup rate by taking the difference between PV HT and PA HT, divided by PV HT, then multiplied by 100. |
| Selling price including tax = PV excluding tax + (VAT rate % of PV excluding tax) | This formula is used to calculate the sales price including tax by adding the VAT amount (calculated by taking the VAT rate % of the PV excluding tax) to the PV excluding tax. |
Application: TechnoPlus Company
States :
TechnoPlus is a company specializing in the sale of high-tech equipment. It recently launched a new flagship product, a latest-generation mobile phone. Sales in the first quarter amounted to 5 units. Each unit was purchased by TechnoPlus for a cost price of €000 excluding VAT and was resold for a sale price of €150 excluding VAT. TechnoPlus would like to analyze and evaluate its financial performance.
Work to do :
1. Calculate TechnoPlus' overall margin on the product sold.
2. Calculate TechnoPlus' margin rate on this product.
3. Calculate the TechnoPlus markup rate on this product.
4. Calculate the VAT on the product sold.
5. What is the interpretation of the financial results obtained?
Proposed correction:
1. To calculate the overall margin, we will use the formula:
Overall margin = Unit margin x quantity sold
With: Unit margin = PV HT – PA HT = 200€ – 150€ = 50€
So the overall margin = €50 x €5 = €000
2. The margin rate is calculated as follows:
Margin rate = ((PV HT – PA HT) ÷ PA HT) x 100) = ((200€ – 150€) ÷ 150€) x 100 = 33.33%
3. The markup rate is calculated as follows:
Brand rate = ((PV excluding tax – PA excluding tax) ÷ PV excluding tax) x 100 = ((€200 – €150) ÷ €200) x 100 = 25%
4. Considering a VAT rate of 20%, the VAT on the product sold is calculated as follows:
VAT = VAT (%) x (Sales price excluding tax) = 0,20 x €200 = €40
5. The interpretation of the financial results obtained shows that the product generates an overall margin of €250, or a margin rate of 000%, i.e. each euro spent by the company generates approximately €33.33 of margin. The markup rate, for its part, indicates that each euro collected in sales generates approximately €0,33 of margin. In addition, each product sold generates €0,25 of VAT.
Summary of Formulas Used:
| Overall margin | Unit margin x quantity sold |
| Margin rate | ((PV HT – PA HT) ÷ PA HT) x 100 |
| Brand taxes | ((PV HT – PA HT) ÷ PV HT) x 100 |
| VAT | VAT (%) x (Sales price excluding tax) |