Income is what you sit with after all the expenses and taxes have been deducted from the retail price.
Let's say you create some product, XYZ, which takes you exactly 5 hours to make. The materials to make the product costs you $50, the salary costs $100 ($20/hr * 5 hours), the shop costs (rent, utilities, etc.) costs roughly $5 pr product. And the things involved in selling your product (marketing, etc.) costs you $45 pr. product.
So in order to break even, you need to charge $50 + $100 + $5 + $45 = $200
You decide to sell the product for $250.
So before taxes you've earned $250 - $200 = $50
And let's say you have to pay 10% taxes on that, so 10% off $50 = $5
Your shop is left with $45 for each product they sell. Or you have $45 in income.
Income is what you sit with after all the expenses and taxes have been deducted from the retail price.
Let's say you create some product, XYZ, which takes you exactly 5 hours to make. The materials to make the product costs you $50, the salary costs $100 ($20/hr * 5 hours), the shop costs (rent, utilities, etc.) costs roughly $5 pr product. And the things involved in selling your product (marketing, etc.) costs you $45 pr. product.
So in order to break even, you need to charge $50 + $100 + $5 + $45 = $200
You decide to sell the product for $250.
So before taxes you've earned $250 - $200 = $50
And let's say you have to pay 10% taxes on that, so 10% off $50 = $5
Your shop is left with $45 for each product they sell. Or you have $45 in income.
Your operating margins would be $45 / $250 = 18%