PROFIT MARGIN

PROFIT MARGIN

profit margin.

1. The difference between the cost of something and the price for which it is sold.

2. The ratio, expressed as a percentage, between this difference and the selling price. ? For example, a widget costing a retailer $10 and selling for $15 has a profit margin of 33% ($5 difference divided by $15 selling price). ¡ª Often shortened to margin.


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