Mark up and Margin
troy
Registered Posts: 275 Dedicated contributor 🦉
Would someone please explain how to work out Mark up and Margin please?
I know i should have learnt this at Intermediate level but i just couldn't get my head around it :huh:
I know i should have learnt this at Intermediate level but i just couldn't get my head around it :huh:
0
Comments
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Mark up is an increase above cost price. ie If it costs £1, a 50% markup will lead to a selling price of £1.50.
Margin is a proportion of selling price. ie If it sells for £1, a 50% margin means it cost 50p to make.
I believe that's correct, but it may be a little simplistic.0 -
I believe as formulas:
Gross Profit Margin = Gross Profit/Sales x 100%
Gross Profit Mark up = Gross Profit/Cost of Sales x 100%
where Gross Profit = Sales - Cost of Sales0
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