Answer:

Margin is calculated per Product, based on the Average Landed Cost and Unit Sale Price on the Sale Order. 

The Average Landed Cost is calculated based on the purchase price + any other costs associated with getting the stock to you (excluding taxes). 

Our formula for calculating margin is below: 

% (Unit Sale Price - Average Landed Cost) / Unit Sale Price

For never diminishing products, the Cost field (or Last Cost) will be used in lieu of Average Landed Cost:

% (Unit Sale Price - Cost) / Unit Sale Price

For information on how Average Landed Cost is calculated, see How to manage Average Landed Costs.

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