Question 1

How do you calculate profit margin?

Accepted Answer

Profit margin = (revenue - cost) / revenue x 100. For example, $10,000 revenue and $6,500 cost gives $3,500 profit and a 35% margin.

Question 2

What is the difference between margin and markup?

Accepted Answer

Margin divides profit by revenue. Markup divides profit by cost. The same sale can have a 35% margin and a 53.85% markup.

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