Term
Gross margin
The share of each sale left after paying for what was sold (materials, merchandise, making it), before rent, wages and every other expense. Gross profit divided by revenue.
In pesos: A hoodie that sells for $1,000 MXN and costs $400 to make has a gross margin of 60%: $600 of every $1,000 remain to pay for everything else.
Where to go deeper
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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.