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Margin vs. Markup Knowing the difference can improve profits! To calculate margin and markup, you need three numbers: 1: Revenue: Income earned from sales after discounts & rebates 2: Cost of Goods Sold (COGS): The cost to create the product/service 3: Gross Profit: Revenue - COGS 🔹 Margin is based on the selling price. It shows the percentage of the selling price that becomes gross profit. Formula: (Gross Profit / Reveue) x 100 🔹 Markup is calculated based on the cost. It shows how mu...
Chris Reilly on LinkedIn: 𝗧𝗼𝗽 𝟯 𝗥𝗲𝗮𝘀𝗼𝗻𝘀 𝗬𝗼𝘂𝗿 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 𝗦𝗵𝗲𝗲𝘁 𝗗𝗼𝗲𝘀𝗻'𝘁…
Chris Reilly on LinkedIn: 𝗧𝗼𝗽 𝟯 𝗥𝗲𝗮𝘀𝗼𝗻𝘀 𝗬𝗼𝘂𝗿 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 𝗦𝗵𝗲𝗲𝘁 𝗗𝗼𝗲𝘀𝗻'𝘁…