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percentage margin
the difference between cost and selling price, divided by the selling price plus tax (i.e. a product costs $1 and is sold for $2 plus tax produces a 50% margin)
percentage-of-sales method ...
Some products may have a rather high percentage margin-e.g., a scarf bought at wholesale at $10 and marked up 100% to be sold at $20. However, the absolute margin is only $20-$10=$10.
 See also: Private label, Perceived value, Perceived, Mix, Introduction
  
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