MARK-UP AND MARGIN _HELP PEUGEOT

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
HI STEVE,
CAN YOU PLEASE HELP. I AM REALLY STRUGGLING GETTING MY HEAD ROUND THIS. I NEED TO MAKE SURE I UNDERSTAND THIS AND DON'T WASTE TIME IN THE EXAMS AS MY RIGHT HAND IS SWOLLEN AND VERY PAINFUL AT THE MOMENT.
LOLLYPOPS

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:MARK-UP AND MARGIN _HELP PEUGEOT

    Hi,

    the key is to remember what effect each value has on sales against cost of sales. Mark up brings sales up above 100% and margin gives sales a value of 100%.

    Example Factory Y produces dresses and sells them at a mark up of 30%

    Sales = 130%
    Cost of sales = 100%
    Gross profit = 30%

    Factory Z produces dresses and sells them at a margin of 30%

    Sales = 100%
    Cost of sales = 70%
    Gross profit = 30%

    Just remember that mark UP means sales is UP ABOVE 100% and you should do ok.

    Good luck
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:MARK-UP AND MARGIN _HELP PEUGEOT

    Thanks Jackie. That's great. I will go off and practice some questions now and see how i get on.
    lol
    lollypops

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