FRA Mark Ups and Margin

candykisses
candykisses Registered Posts: 3 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
Hi
Has anyone got any good tips for remembering how to calculate above items?

My mind seems to just go blank when I get a question on mark ups and margin.
Thank you

Comments

  • rehana
    rehana Registered Posts: 61 Regular contributor ⭐
    we use mark up as % added to cost price to arrive at selling price. so cost price is 100%
    so if mark up is 20% selling price is 120% .remember marc up on cost price (two c's)

    Margin is when selling price is 100% as margin is expressed as a % of selling price
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    candykisses wrote: »
    Hi
    Has anyone got any good tips for remembering how to calculate above items?

    mark up = COSTS going UP

    Margin = COSTS comming in

    See the attached document. It may help
  • candykisses
    candykisses Registered Posts: 3 New contributor 🐸
    Thank you both, most helpful.
  • steveJ
    steveJ Registered Posts: 694 Epic contributor 🐘
    I had to print that picture out...that really helps !!!
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    I used to tell myself MUCOS and MARS
    Mark Up - Cost of Sales
    MARgin - Sales
  • snowmarauder
    snowmarauder Registered Posts: 99 Regular contributor ⭐
    Mark UP. MargIN.

    IE. Mark UP add it on, up the amount. units + %, cost 100 for 1 unit and the mark up is 40%. 100 + 40% = 100 + 40 = 140
    MargIN included, is the whole lot profit and cost. cost 100 for 1 unit, sold for 140 so MargIN IS 40%. 140 / 140 x 100 = cost. 140 / 140 x 40 = 40 = profit

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