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Margin Analysis: $500 Cost vs $1000 Sale
Gross Profit Margin
50.0%
Net Profit: $500
Margin vs Markup
While often confused, Margin and Markup are different:
Margin: 50.0%
Markup: 100.0%
Margin is profit relative to revenue, while Markup is profit relative to cost.
Financial Insight
Gross Profit:
$500
Revenue Percentage:
100%
A margin of 50.0% means for every dollar of revenue, you keep $0.50 as profit.