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Margin Analysis: $100 Cost vs $120 Sale

Gross Profit Margin

16.7%
Net Profit: $20

Margin vs Markup

While often confused, Margin and Markup are different:

Margin: 16.7%

Markup: 20.0%

Margin is profit relative to revenue, while Markup is profit relative to cost.

Financial Insight

Gross Profit:

$20

Revenue Percentage:

100%

A margin of 16.7% means for every dollar of revenue, you keep $0.17 as profit.

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