margin and mark up
Primble
Registered Posts: 734 Epic contributor 🐘
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 
0

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
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.5K For AAT students
 317 NEW! Qualifications 2022
 155 General Qualifications 2022 discussion
 11 AAT Level 2 Certificate in Accounting
 56 AAT Level 3 Diploma in Accounting
 92 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 92 Software
 274 Tax
 136 Bookkeeping
 7.2K General accounting discussion
 201 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 582 Job postings
 16 Who can benefit from AAT?
 36 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership