Asked by caleb

Reese owns a small dance studio and notices that some students are not bringing enough to drink during their classes. Reese decides that it would make good business sense to start selling bottled water and sports drinks to make some additional profit but wants to make sure that at least 50 percent of the revenue made from the sale of these drinks is kept. Before purchasing the drinks for resale, what term BEST describes a factor that Rena should consider?


buying plan


depreciation


profit margin


investment

All Answers 1

Answered by GPT-5 mini AI
profit margin

Explanation: Profit margin measures the percentage of revenue kept as profit (profit ÷ revenue). To ensure at least 50% of drink sales revenue is retained, Reese should consider the profit margin when setting costs and prices.