Profit as a Percentage of Sales
To determine the share of profit on cost, we first need to calculate the profit as a percentage of sales.

Given that the profit is 1/10 of the sales, we can express this relationship mathematically as follows:

Profit = (1/10) * Sales

To find the percentage, we divide the profit by the sales and multiply by 100:

Profit % = (Profit / Sales) * 100

Now, let's proceed with the calculations.

Calculating the Share of Profit on Cost
To find the share of profit on cost, we need to express the profit as a percentage of the cost.

Step 1: Determine the Cost
The cost can be calculated by subtracting the profit from the sales:

Cost = Sales - Profit

Step 2: Calculate the Profit % on Cost
To find the share of profit on cost, we divide the profit by the cost and multiply by 100:

Profit % on Cost = (Profit / Cost) * 100

Let's plug in the values we calculated earlier to find the answer.

Example:
Let's assume the sales are $1,000.

Profit = (1/10) * $1,000 = $100
Cost = $1,000 - $100 = $900

Now, we can calculate the share of profit on cost:

Profit % on Cost = ($100 / $900) * 100 = 11.11%

Explanation:
The share of profit on cost represents the percentage of profit earned in relation to the cost. In this case, the profit % on cost is 11.11%. It means that for every dollar spent on the cost, the business earns a profit of 11.11 cents.

This metric is useful for analyzing the profitability of a business and understanding the efficiency of cost management. A higher profit % on cost indicates that the business is generating a higher return on its cost, which is generally desirable.

By calculating the share of profit on cost, businesses can assess their profitability and make informed decisions regarding pricing, cost control, and overall financial performance.