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# What is Margin in the Product Sales report and how is it calculated?

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Margin in the Product Sales report represents the profit generated from the sale of a product. A higher margin indicates a greater profit obtained from selling the product.

The margin is calculated using the following formula:

**Margin** = \[(Sales Price - Cost Price) / Sales Price\] \* 100

**Note:** This formula is calculated based on the line item discounts and the tax exclusive sales price and cost price of the product.

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