mark up and margins

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hiya,<BR><BR>Quick one for everyone ... not trying to panic anyone but do you think there will be anything on Mark up and Margins ?? <BR><BR>Really at a loss to these and need help ... not just adademic but mental after these exams<BR><BR>Bertie

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    mark up and margins

    there my be!!<BR><BR>This might help<BR><BR>Margins:<BR><BR>Sales =100%<BR>COS = 70%<BR>Profit =30 %<BR><BR>Markup <BR>Sales 140%<BR>COS =100%<BR>Profit = 40%<BR><BR>The questions are normally worded like profit is mark up of 30% or margin of 30%.<BR><BR>If you have the sales figure to work out the total cost of sales =<BR><BR>margin = sales figure/100x70= cos<BR><BR>or to work out the sales figure and you have the cost of sales figures<BR><BR>mark up <BR><BR>cos/100x140= sales<BR><BR>hope this helps<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    mark up and margins

    I had some notes on this as it was driving me mental:- I think I can just about pull through it now if it comes up. <BR><BR>A markup of 30% on cost, cost price is £15.00<BR><BR>Draw the following table:-<BR><BR>Price ? ?<BR>Profit ? ?<BR>Cost ? ?<BR><BR>Enter the data supplied:-<BR><BR>Price <BR>Profit 30% ?<BR>Cost 100 £15.00<BR><BR>Fill in the gaps on the ratio side:- i.e. 100 + 30 = 130<BR><BR>Price 130<BR>Profit 30<BR>Cost 100 £15.00<BR><BR>Then calculate the remaining figures:<BR><BR>Price 130 £19.50<BR>Profit 30 £4.50<BR>Cost 100 £15.00<BR><BR>i.e. £15.00 x 30% = 4.50<BR>£15.00 + 4.50 = 19.50 <BR><BR>Then work the other way if its for margin i.e. work from Price down to cost.<BR>

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