BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Php 120
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Php 80
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Php 130
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Php 90
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Detailed explanation-1: -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.
Detailed explanation-2: -For example, if a product sells for $125 and costs $100, the gross margin is ($125 – $100) / $125 = 0.2(20%) = 20%. Intuitively, the markup is always larger, as compared to the gross margin, as shown in the table below. (As long as you charge more than what the product costs.)
Detailed explanation-3: -The markup percentage is calculated by subtracting the unit cost from the selling price, dividing by the unit cost and multiplying times 100.
Detailed explanation-4: -Markup percentage is calculated by dividing the gross profit of a unit (its sales price minus its cost to make or purchase for resale) by the cost of that unit. If an item is priced at $12 but costs the company $8 to make, the markup percentage is 50%, calculated as (12 – 8) / 8.