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What is Margin?

Margin is nothing but profit. For example, let’s say that you own a kirana store called PG Kirana. You pay 10 rs for a Colgate toothpaste, and sell it at MRP – 12 rs. In this case:

Your Cost price = 10 rs

Selling Price = 12 rs

Profit (aka margin) = 2 rs. OR 2/10 = 20%.