Calcualte profit as a perent of sales

Sales $270,000
Less variable costs 110,000
contribution margin 160,000
less fixed costs 70,000
Profit 90,000

$90,000,00 divided by $270,000.00 = 0.334

Learn the math behind it. If you want to calculate anything as a percent OF anything else, divide them in order.

Profit as percent of sales: profit/sales.

Accounting majors as percent of class size: majors/class size.

Works for anything.

Total net sales $17.8 billion
Net income $389 million

Net Sales / Net Income