Question about Markup
westendlad
Registered Posts: 30 Regular contributor ⭐
I'm doing the December 2005 paper in preparation for the unit 5 exam next week.
There is a question :
On October 2005, closing stock was valued at selling price of £22,750 excluding VAT.
The markup on these goods is 40%.
The answer is :
£22,750 / 1.4 = £16,250
How do you do this ? What does 1.4 mean ?
There is a question :
On October 2005, closing stock was valued at selling price of £22,750 excluding VAT.
The markup on these goods is 40%.
The answer is :
£22,750 / 1.4 = £16,250
How do you do this ? What does 1.4 mean ?
0
Comments
-
The goods are priced at £22,750 this includes the 40% mark up.
So to take away the 40% you will do the equation 22750/1.4 = £16,250
Alternatively the price before mark up is £16,250 to which you want to add 40%
£16,250*1.4= Selling price £22,750
/1.4 is the equation for taking off 40%
Hope this helps and good luck for next week!!0 -
thanks, I'll need it :thumbup1:0
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