|
There is often confusion between the differences of a Cost Plus Margin and a Retained Margin.
'Cost Plus' is simply the cost price plus the percentage of the cost price. 'Retained Margin' means how much profit gained in a sale price. For example: Cost Price: £100 Sale Price: £125 Cost Plus = Cost (£100) plus 25% of cost price (£25) Retained Margin = profit of £25 on a sale of £125 ie 25/125 = 20% |
 |