margin and mark up
Primble
Registered Posts: 734
if I have to work out sales with 40% mark up for part a and a 40% margin for part b. how are these different and worked out? The example I looked at wasn't very good
0
Comments

Mark up is the percentage that you increase the cost price by, so if you purchased an item for £100 the markup would be £40 as this is 40% of £100. Total selling price would be £140.
If you were to apply a margin of 40% to the £100 item, £100 would represent 60% of the total cost (100  40) so, £100/60 x 100 would give you the selling price of £166.67 with £66.67 being the margin.0 
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Gross Profit Margin = Gross Profitx 100
Sales
Gross Profit Mark up = Gross Profitx 100
Cost of Sales
NET Sales  Cost of Sales = Gross Profit
Cost of Sales = Opening Stock + NET Purchases  Closing Stock
Use these formulae and you'll have no problems. If your algebra was good at GCSE level then you should be able to rearrange these formulae to find whatever is missing. This method works for me.0
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