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What is the difference between gross margin and markup?

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تم إضافة السؤال من قبل Hazim Hassan, CMA, CIFR , Chief Accountant , Al-ghanim & Debbas Gen. Trd. Co
تاريخ النشر: 2017/05/24
zubair qadir
من قبل zubair qadir , Technical Hardware support & Network engineer , IT Help Desk Support

Margin (also known as gross margin) is sales minus the cost of goods sold. For example, if a product sells for $100 and costs $70 to manufacture, its margin is $30. Or, stated as a percentage, the margin percentage is 30% (calculated as the margin divided by sales). Markup is the amount by which the cost of a product is increased in order to derive the selling price. To use the preceding example, a markup of $30 from the $70 cost yields the $100 price. Or, stated as a percentage, the markup percentage is 42.9% (calculated as the markup amount divided by the product cost).

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