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    mikkj86's Avatar
    mikkj86 Posts: 3, Reputation: 1
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    #1

    Mar 17, 2010, 07:43 PM
    How to calculate a firms margin
    A firm has an ROI of 15%, turnover of 3, and sales of $6million. The firms' margin is?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Mar 18, 2010, 08:59 PM

    Set up your extended equation for ROI. Plug in what you know and work towards what you don't know. You know ROI and turnover, so you can solve for profit margin easily enough. (You don't even need the sales to do that.)
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