Question

Your gross margin is 60%, your operating expenses are: staffing 35%, rent 10%, miscellaneous 5%. Are you making a profit?

Answer 1

Out of the 100% selling price, the margin is 60%. Now, you need to pay fro the expenses with your margin.

Staffing = 35%

Remaining money = 60% - 35%

Remaining money = 25%

Now, 10% goes to rent

Remaining money after paying rent = 25% - 10% = 15 %

Now, 5% goes to miscellaneous expenses

Hence, the remaining money after paying all the expenses = 15% - 5%

Profit = 10%

Hence, you are making a profit of 10%.