Every business wants to know whether your sales are sufficient to cover your costs. Gross margin is a company's net sales revenue minus its cost of goods sold (COGS). An indicator of whether a company is running an efficient operation and if its sales are good enough.

At 50% for a year, margin is high. As a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.

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