Respuesta :
Profit margin is $2 per taco
Given average price is $5 , cost of taco is $3 .
Profit margin is to be computed.
Profit margin measures how much money a firm or business activity produces by dividing income by revenues. Profit margin is generally expressed as a percentage, it represents how many cents of the profit are earned for every dollar of the sales.
Profit margin expresses a firm's or commercial activity's relative profitability by accounting for the expenses of producing and selling items. A profit margin is a measure of a company's earnings (or profits) relative to its sales in accounting and finance.
Profit margin = Profit per taco = Price - Cost of producing each taco
= 5 - 3
= $2 per taco.
Therefore, the profit margin is $2 per taco.
To know more about profit margin click here:
https://brainly.com/question/24161087
#SPJ4
