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Definition: The percent of sales that result in profits. They can either be talked about in "gross margins" or "net margins."
TeenAnalyst Advice: This would be the percentage of profits a company receives for their revenues. For example, if I sold candy for $1.00 and it cost me $0.20 to make that candy, I would have $0.80 of profit. My profit margin would be 80%.
A gross margin refers to sales minus cost of goods sold.
A net margin refers to sales minus cost of goods sold minus expenses.
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