Formal
Describes the profit on a sale, or the difference between the Sales Price and Cost of manufacture. Eg, Sales Price $15, Cost of Manufacture $10, then Margin = 33% being the $5 Profit divided by the $15 Sales Price. NOT the same as Mark Up (50%).
Real-world Example
A product sells for $100 and costs $70 to produce and deliver, leaving a margin of $30, or 30% - the proportion of the sale price that represents profit.
Comments
Please sign in to leave a comment.