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Sales Margin Calculator
Sales margin is the method to calculate the profit earned out of a product on it's sale. Generally, we calculate the sales margin in percentage.
Let's say a shoe manufacturing company spent $10 on direct material and labor cost for manufacturing a pair of shoes and sold it for $15 to it's customers.
Here we could say, $10 = direct material and labor cost
$15 = Sales price
We could use this below formula to find sales margin:
Let's input the values onto the formula = (15 - 10 / 15) x 100
= 33.33%
Hence, the sales margin for a pair of manufactured shoe is 33.3%
Similarly, enter the sales price and direct material & labor cost in the below online sales margin calculator and click calculate button to find out the answer.
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