mark up and margins % ?????

louise
louise Registered Posts: 49 💫 🐯 💫
hello can anyone explain how to figure out the % of margin and markup!!!

please

louise

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    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
    [email protected]
    www.sandyhood.com
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    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
    [email protected]
    www.sandyhood.com
  • Cullen
    Cullen Registered Posts: 592
    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)
  • louise
    louise Registered Posts: 49 💫 🐯 💫
    hello,

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

    i get them all with that tip

    louise :thumbup1:
  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    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!
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