Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

We hope you are all safe and well and if you need us we will be here. 💚

# Markup on total cost %

Registered Posts: 42
Hello,

Can someone please explain to me how to calculate the markup on total cost % - I have attached the question.

Thank you

• AAT Student, AATQB Posts: 264
Mark up on total cost is exactly that, an increase(up) on cost to ensure profit will be made
For example cost of sales (100%)+mark up (20%) = turnover 120%
So knowing the sales and cost of sales will help us find the mark up %
Total cost of sales (fixed + variable) £14710150 and Turnover £16800000
Substitute in the formula to get £2089850
To find what percentage is that of cost : 2089850/14710150*100=14.21 rounded up
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 42
thank you,

I have one more question - I have attached the question. I am struggling to calculate the Inventory holding period. The answer is 148 days and i get 147. I would appreciate if you could explain where I am going wrong. I calculated the average of the inventory first.

thank you
• AAT Student, AATQB Posts: 264
I am sorry but I don't see the question
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 42