Task 6 Performance Indicators - Decision and Control AAT PA 2

larora

Can you please explain how to work out this question, I've done most of it but couldn't work out how to find the Markup on total cost (%).
I have an exam tomorrow, mostly I'm ready but this one is quite hard to do.

Pian32

Mark up is the profit compared to cost.

So is the cost was £100 and it was sold for £110 then the mark up will be 10% (10/100*100). The margin would be 9.09% (10/110 *100)

In the question you want the mark up on total cost:

Total cost = 26+35 = 61

So the Mark up will be:

Mark up = (70-61)/61 *100
=14.75%

Do be careful here as lots of questions will want markup on Cost of sales not the total.

larora

Many thanks, I did my exam yesterday, it was hard, but hoping to pass and must be final time