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 Post subject: CDR general question
PostPosted: Sat Jan 30, 2010 7:53 pm 
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Joined: Fri Dec 19, 2008 10:31 pm
Posts: 31
I can't figure out whats the difference between Margin and Markup .
How the two % are calculated?
I couldnt figure it out


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 Post subject: Re: CDR general question
PostPosted: Sun Jan 31, 2010 10:34 am 
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Joined: Fri Jun 23, 2006 3:56 pm
Posts: 4065
Hi

The telecoms industry tends to use Margin, as you can only thing you can accurately count is your revenue. The costs are often more difficult to count.

Markup is more often used with selling goods rather than services.

Lets say you have a buy rate of 25 and a sell rate of 50. Your Margin will be 50%, and your markup will be 100%


Margin = ((sell rate - Buy Rate) / Sell rate) x 100
Markup = ((Sell Rate - Buy rate) / Buy rate) x 100

Joe


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