Question

Explain the difference between a markup and a margin.

Answer 1

The answer is

Profit margin is sales minus the cost of goods sold. Markup is the percentage amount by which the cost of a product is increased to arrive at the selling price. Markup is the retail price for a product minus its cost, but the margin percentage is calculated differently.

on edg 2020

Explanation:

Answer 2

Step-by-step explanation: mark up would be a fixed percentage, say you mark up your goods 50% your cost is $1 and 50% m-up would mean a selling price of 1.50. given this , your margin is 50cents. but margin may vary, there are indirect costs, example. store a charges, 1% display fee, store b charges 3% display fee. so, in store by your margin decreases. other factor that may affect margin are commission, local taxes, store charges.