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How Margin is Calculated

Question from one of our subscribers:

Hi

This might be a basic question for a lot of people here. How exactly are margins calculated?

Answer:

HI!

To calculate a profit margin you calculate the percentage of the gross profit of your product. For example if you have a wholesale cost of $10 for a product. You determine your selling price is $15. Your gross profit per product is $5.00. The gross profit margin is 33.33%.

Hope this helps!

 

 
 
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