Cost plus margin calculation forex

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There is more than one type of cost which could be used in this calculation, therefore it is important that the required profit margin is appropriate for the cost being considered. For an outsourced purchased item, the cost would be the item purchase price and delivery charge paid before any tax was included. In addition to this would be the general business overhead costs for administration, sales and marketing, however this would normally be incorporated into the required profit margin instead.

Profit Margin This is the percentage of the selling price which represents the profit that is made, or what is left after the deduction of cost. The profit margin is often referred to as gross profit margin, or contribution margin. Typically it represents a contribution to the profitability of the business before general business overheads such as accounts, admin, customer services, sales and marketing have been deducted. Trading alone is boring Never trade alone again.

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