by 
Massey
ANSWERS: 1
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The profit margin (also known as the markup) is whatever the business wants to add up to the cost of the product in order to make a gain for the company per unit. I.e. if you buy something for $100 and you add up a 20% margin, then you will sell it for $120. The profit percentage is something you see on a Profit and Loss Statement. You have two levels of profit: Gross Profit (Sales minus Costs) and Net Profit (Gross Profit minus Expenses, such as Administration Expenses). I.e. The company sold $10,000 in goods, the cost of the goods was $5,000 then the Gross Profit Percentage is 50%. After that all company expenses added up $2,500 then the Net Profit Percentage is 25%. Profit percentage and Profit Margin are connected because in order to fullfil your Net Profit objective you will have to calculate or forecast in advance sales, cost and expenses. Doing a reverse math you are able to set a Margin that will allow the company to be profitable.
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