01-11-2013, 07:46 PM
If you sell an item for $100 and you bought it for $60. You have a 40% margin in retail parlance.
In other words you made $40 on the $100 sale. That is the gross margin, before you factor all other overhead expenses.
In other words you made $40 on the $100 sale. That is the gross margin, before you factor all other overhead expenses.