Gross margin
Revenue minus the direct cost of what was sold, as a percent of revenue.
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Words beside it
- Adjusted gross income (AGI)
Your total income minus certain deductions; many limits, including who can deduct an IRA, are based on it.
- Contribution margin
Price minus variable cost per unit. What each sale contributes toward fixed costs and profit.
- gross income
The total amount of money you earn before any taxes or deductions are taken out. It is the big number at the top before anything gets subtracted.
- Margin
Borrowing from a broker to hold a position, or the collateral required for it.
- Margin call
The broker demanding cash or selling your holdings because your borrowing got too large.
- Marginal tax rate
The rate on your last dollar of income. The rate that matters for most decisions.
- modified adjusted gross income
Modified adjusted gross income is a specific calculation of your yearly earnings that the IRS uses to decide if you qualify for certain accounts or benefits. It starts with your total income and then adds or removes a few specific items according to tax rules.
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