STILL not understanding Mark-Ups and Margins!

Mollypod88

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?

NeilH

Hi

In what way are you having problems?

Neil

Clarekaye

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:

PGM

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.

Yazi

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

Yazi

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.

welshwizard

Mark-up and Margin

Have a look at the attached document

Attachment not found.

Does this help?