A company reports revenue of 1,000 in a year with a profit margin of 15%. What is the profit for that year?

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Multiple Choice

A company reports revenue of 1,000 in a year with a profit margin of 15%. What is the profit for that year?

Explanation:
Profit is what remains from revenue after applying the profit margin. A 15% margin means the profit equals 15% of revenue. So with revenue of 1000, the profit is 1000 × 0.15 = 150. This is the correct amount. The other numbers would come from misinterpreting the margin (for example treating it as a flat amount or subtracting it from revenue), but the margin must be applied to the revenue to get the profit.

Profit is what remains from revenue after applying the profit margin. A 15% margin means the profit equals 15% of revenue. So with revenue of 1000, the profit is 1000 × 0.15 = 150. This is the correct amount. The other numbers would come from misinterpreting the margin (for example treating it as a flat amount or subtracting it from revenue), but the margin must be applied to the revenue to get the profit.

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