mark up on Costa and Margin on sales

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Morning All<BR><BR>Could anyone please help?<BR><BR>Does anyone have an easy was of remembering how to work out margins on sales and the mark up costs? I'm having as brain freeze at the moment. The more I look at it the more confused I get! <img src="i/expressions/face-icon-small-blush.gif" border="0"><BR><BR>Many Thanks<BR><BR>Ruth

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    mark up on Costa and Margin on sales

    Hi, our tutor taught us to remember that 'mark-up' means that sales is 'up above'. So if mark up is 30%, then sales is 130% because it is up above. With mark up this means that gross profit is always 100% and cost of sales is the difference, ie 30%.<BR><BR>With margin, Sales is always 100%, gross profit in this example would be 70%, and cost of sales 30%.<BR><BR>You only need to remember that mark up sales are up above, and the rest should fall into place. <BR><BR>Hope this helps.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    mark up on Costa and Margin on sales

    Thanks for the reply!<BR><BR>I think I now finaly have my head round it! <img src="i/expressions/face-icon-small-smile.gif" border="0"><BR><BR>Ruth

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