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STILL not understanding Mark-Ups and Margins!

Mollypod88Mollypod88 Well-KnownRegistered Posts: 155
Hi All,

I'm still not understanding Mark-Ups and Margins! This is the only thing I failed on and I really don't want to fail again!

Is anyone else struggling?

Comments

  • NeilHNeilH Trusted Regular Registered Posts: 547
    Hi

    In what way are you having problems?

    Neil
  • ClarekayeClarekaye Trusted Regular Registered Posts: 306
    Meeeeeeee! I am still struggling, I have my AP2 tomorrow and I am confident on all apart from this.

    Mark did a tip sheet which did help BUT as soon as I get the question infront of me I panic, did a mock last night that asked for cogs and worked it out wrong I did the figure/100xby the difference anywho it was wrong.
    I understand like something is meant to be 100% and you work out from that but my brain doesnt like it :crying:
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    Mollypod88 wrote: »
    Hi All,

    I'm still not understanding Mark-Ups and Margins! This is the only thing I failed on and I really don't want to fail again!

    Is anyone else struggling?

    I used excel to play around with mark up and margins, to get my head around it all.
  • YaziYazi Well-Known Registered Posts: 225
    Firstly Markup

    Say Purchase Price is £150
    and Sales price is Price say is £200

    Divide difference in these two figures by purchase price = Markup...

    50/150 = 0.33 *100 = 33% Markup.

    To check = Sales price £150 multiply by 33% = £200
  • YaziYazi Well-Known Registered Posts: 225
    Margin

    For a 5% margin divide cost by .95
    For a 10% margin divide cost by .90
    For a 15% margin divide cost by .85
    and so on.
  • welshwizardwelshwizard Trusted Regular South WalesRegistered Posts: 465
    Mark-up and Margin

    Have a look at the attached document

    Attachment not found.

    Does this help?
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