Margin
Difference between selling price and cost; profit.
Formula
Net Profit Margin (%) = (Net Profit ÷ Revenue) × 100
Real World
Apple's net profit margin consistently exceeds 25%, meaning for every £1 of iPhone revenue, over 25p is kept as profit — far above most smartphone rivals.
Exam Focus
Always state which margin type you're calculating; confusing gross and net margin loses marks on 'analyse' and 'evaluate' questions.
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