mark up and margins % ?????

louise

hello can anyone explain how to figure out the % of margin and markup!!!

please

louise

SandyHood

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

SandyHood

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

Cullen

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

hello,

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

i get them all with that tip

louise :thumbup1:

Gem7321

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!