MARK UP

The initial markup is the difference between the initial retail selling price (at the time of receipt of the merchandise) and the cost. Then the percentage is calculated as that difference divided by the initial cost of goods sold.

Let's look at an example:

Initial Retail is $1.99

Cost is $1.40

Difference = $0.59

Thus the Initial Markup is ($0.59/$1.40) x 100% = 42.14%

As a Fixed Amount

• Assume:
  • Retail list price = $2500
  • Product cost is $2000

• MARKUP = price - cost
  • $2500 - $2000 = $500

I love mark up... But i don't really like mark down.. I have to keep doing the same questions for many time to get the concept.. Final exam is coming around. so i have to study hard.. Miss Ch'ng give me good marks ok! hehe.. Kiddin'...


To find Mark Up... Just Use this formula...

R =M + C

R for retail and C for cost.. definitely you will get the make up...