BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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412%
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120%
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400%
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200%
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Detailed explanation-1: -if a product cost $2.00 and it is marked up to $6.00 this would be a 200% increase. (4/2 x100) = 200%.
Detailed explanation-2: -Dividing the markup by your original cost and multiplying by 100 converts the markup to a percentage format. In the example, dividing $60 by $40 and multiplying by 100 calculates the percent markup of 150 percent.
Detailed explanation-3: -For example, if a product costs $100, the selling price with a 25% markup would be $125: Gross Profit Margin = Sales Price – Unit Cost = $125 – $100 = $25. Markup Percentage = Gross Profit Margin/Unit Cost = $25/$100 = 25%. Sales Price = Cost X Markup Percentage + Cost = $100 X 25% + $100 = $125.
Detailed explanation-4: -Multiply the original price by 0.2 to find the amount of a 20 percent markup, or multiply it by 1.2 to find the total price (including markup). If you have the final price (including markup) and want to know what the original price was, divide by 1.2.