margin and mark ups

KVeevers

Hi everyone
Can someone help me?
I just would like to know,
Why calculating margin and mark up? I just don’t understand it?
And could someone tell me an easy way to remember the calculation.

Thank you

Katrin

mally

For margin:
Cost of sales 60%
Gross profit 40%
Selling price 100%

Mark-up:
Cost of sales 100%
Gross profit 40%
Selling price 140%

I hope that helps!