Gross margin

 

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Gross margin

The difference between the selling price of an item and the purchase or manufacturing cost, expressed as a percentage of the selling price.For example, if it costs a company 6 to manufacture an item and the selling price is 10, the gross margin is:(10 - 6) / 10 x 100 = 40%When looking at a company's Report and Accounts, the gross margin of the business as a whole is its turnover less the cost of sales, divided by the turnover, multiplied by 100.For example: (2,000,000 - 1,200,000) / 2,000,000 x 100 = 40%



Similar Matches

Marginal cost

Marginal cost

The increase in cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output.


Contribution margin

Contribution margin

The difference between variable revenue and variable cost.


Margin call

Margin call

A demand from a broker to a client to provide more funds to bring a margin account balance up to a required level.


Margin

Margin

The difference between the cost price of a product and the selling price.In trading, the amount deposited with a broker in order to obtain credit for purchase of shares or futures. The margin is the price of a security less credit advanced by the broker.The difference between a market maker's buying and selling prices. Also known as spread.


Margin security

Margin security

A security that may be bought or sold in a margin account as defined in Regulation T.


Further Suggestions

Unmargined account
Gross profit margin
Operating profit margin
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margin securities
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Net profit margin
Marginal
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Margin requirement (options)
Marginal propensity to import
Initial margin
initial margin
Marginal propensity
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OTC margin stock
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margin account
marginal tax rate
Marginal propensity to consume
Marginal revenue product
Marginal utility


 
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