Profit margin is calculated by finding the net profit as a percentage of the revenue
Profit margin = [Net profit / Revenue]
Net profit= [Revenue-Cost]
we know that
Revenue = $16.25 million
Cost = $13.5 million + $2.7 million
Net profit = [16.25 million - (13.5 million + 2.7 million)]
Net profit = $0.05 million
Profit margin = 0.05 / 16.25
Profit margin = 0.003077 or 0.3077%
