Margin Analysis: $50 Cost vs $75 Sale

Gross Profit Margin

33.3%

Net Profit: $25

Margin vs Markup

While often confused, Margin and Markup are different:

Margin: 33.3%

Markup: 50.0%

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

Gross Profit:

$25

Revenue Percentage:

100%

A margin of 33.3% means for every dollar of revenue, you keep $0.33 as profit.