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Difference between margin and markup.

Margin is percentage of profit based on sales price while mark up is profit percentage based on cost price

Suppose selling price is 10 and cost of product is 8. It means profit of product is 2 (10 minus 8)
Profit margin = profit/sales price
=2/10 =0.2 =20%
Profit markup = profit/cost price
= 2/8 = 0.25 = 25%

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