Unit 5 - Mark-up and Margins

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hey,

Please can you help me distinguish the difference between Mark up and margin and how to calculate each?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 5 - Mark-up and Margins

    Don't know why you haven't received an answer to this one.

    Mark up is a % added to cost to acheive a selling price. It is calculated by:

    profit/cost * 100 = percentage mark up

    Margin is the percentage of a sales price that is profit. It is calculated by:

    profit/sales * 100 = percentage margin.

    Also beware that it can either be a net profit margin or a gross profit margin.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 5 - Mark-up and Margins

    Probably cos none of the rest of us understand margins and mark-ups either :)

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unit 5 - Mark-up and Margins

    aye you softies have had it easy hidden away in your accounting practices, while us men on the floor do all the graft!









    .........just kidding!

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