Who this applies to#
- Use margin when you need to know what share of selling price remains after the included cost
What Margin requires#
- Keep selling price in the denominator, and write down which costs are included before using the result
What this does not require#
- Margin does not use product cost as its denominator; that calculation is markup instead
Common mistakes#
- Substituting the markup formula
- Leaving the cost scope undefined
Margin checklist#
- Set price
- Set cost
- Subtract cost
- Divide by price