What is the difference between profit margin , gross margin , and revenue ?
In: 135
Buy a computer for $1000 and add 30% gross margin to it.
Sell the computer for your $1000 cost + 30% = $1300
Your gross margin is $300 (30%) , but;
You spent $30 for admin
You spent $15 shipping, so;
Your profit margin is actually $300, minus $45, which is $265.
Sell 100 computers, your revenue is $130 000. Your gross profit is $26 500.
Latest Answers