Margin
Difference between selling price and cost; profit.
Formula
Gross Margin % = (Revenue − CoGS) ÷ Revenue × 100
Real World
Apple's gross margin consistently sits above 40%, meaning for every £100 of iPhones sold, over £40 remains after production costs — giving it enormous pricing and R&D flexibility versus rivals like Samsung.
Exam Focus
Don't confuse gross margin with net margin; state which margin you're calculating and why it's relevant to the question context.
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