The formula to calculate the wholesale margin is:
\[ WM = \frac{WSP - WPP}{WSP} \times 100 \]
Where:
The wholesale margin is the percentage difference between the wholesale sell price and the wholesale purchase price. It represents the profit margin for wholesalers, indicating how much profit they make on each unit sold.
Example 1:
Using the formula:
\[ WM = \frac{150 - 100}{150} \times 100 = \frac{50}{150} \times 100 = 33.33\% \]
Example 2:
Using the formula:
\[ WM = \frac{200 - 120}{200} \times 100 = \frac{80}{200} \times 100 = 40\% \]