# mark up and margins % ?????

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Registered Posts: 49 Regular contributor ⭐
hello can anyone explain how to figure out the % of margin and markup!!!

louise

• Registered, Moderator Posts: 2,034 mod
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The mark up % is the profit as a % of the cost

If a burger costs £0.80 to make and sells for £1.00 the profit is £0.20

Profit = 20p = 25%
Cost..= 80p
Sandy
sandy@sandyhood.com
www.sandyhood.com
• Registered, Moderator Posts: 2,034 mod
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The margin is the profit as a % of the price (or sales revenue)

The burger sells for £1.00 and makes 20p profit

Profit = £0.20 = 20%
Price....£1.00
Sandy
sandy@sandyhood.com
www.sandyhood.com
• Registered Posts: 592 Epic contributor 🐘
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As someone who finds it hard to grasp concepts my old tutor told me to think of two people, Marge and Mark.

Marge sells

Mark costs.

Therefore if you see the word "margin" , sales = 100%

and the word "mark up" , costs = 100%

So if you set up a grid for your cost structure:

£ %

Sales

Costs

Profit

(hope this turns out looking ok)

You can fill in the information that you have been told and can work out the rest.

(Sandy does it much better.................sigh)
• Registered Posts: 49 Regular contributor ⭐
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hello,

thanks ver much for that " marge sells, mark costs" very very very helpfull!!!

i get them all with that tip

louise :thumbup1:
• Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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I try to remember MUCOS and MARS
So Mark Up = Cost of Sales
and MARgin = Sales

It doesn't sound too great now but it works for me!