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M = GP ( Rev - COGS ) / Rev
M.k = (GS.REV - CoS) / CoS
Margin refers to the difference between Gross Sales Revenues and Cost of Sales Divided by Gross Sales Revenue expressed normally in percentage.
Margin = (Gross Sales Revenue - Cost of Sales) / Gross Sales Revenue x100
Whereas Mark-up is arrived at by dividing differenc of Gross Sales and Cost of Sales by Cost of Sales, expressed normally percentage
Mark-up = (Gross Sales Revenues - Cost of Sales) / Cost of Sales x100
Agree With Mohammad asnswer Magin to profit out of the sales price and markup addition amount to the cost and tthe you can claculate it as per the formulas in Mohammad answer
Marginis sales minus the cost of goods sold.
Markup is the amount by which the cost of a product is increased in order to derive the selling price.
Margin= Gross profit (Revenue – Cost of goods sold) / Revenue
Markup= (Gross Sales Revenues - Cost of Sales) / Cost of Sales
i with answer Mr Mohammed Ahmad
In Amount terms, margin and Markup are the same. However these are measured as a percentage.
Take the following Example.
Say cost is $4 and Profit is $1
Markup would be1/4 or25%.
However Margin is1/(4+1)=1/5 or20%.
In my experience Margin is more useful for sales reports while Markup is used by accounting professionals.
How can calculatethe margin available The margin isthe amount of money in your account balance requiredto openthe process of trading.Margin isa simple calculation toestablishthe current market priceagainst the U.S. dollarand the volume oftrading isdesirableandthe level ofleveragethatwas chosenwhen you openyour account.Programtrading isnot going toallowyou to opena business processifyou do not haveenough creditavailable margin. Available marginreferred toin theprogramtradingMeta Trader4. To calculatethe margin requiredto opena business process, please followthe calculationof the following: (* The size of the marketprice ofthe dealership) \\leverage=margin required
Very well explained by Mr. Muhammad Ahmad.
