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What Is Margin?

Margin is the difference between the price of a good or service and the amount of money required to produce it.

Margin Formula:

Example of How to Deduce Margin:

If a product’s retail price is ₹ 120 and profit is ₹ 30.

Then, margin = Profit/Retail Price

Margin = 25/100

Margin = 14


Difference Between Markup and Margin:

The point of markup vs margin is:
Markup is cost-based thinking, and margin is value-based thinking.

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