BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The value added is called the mark-up. The mark-up added to the cost price usually equals retail price.

Detailed explanation-2: -What is markup pricing? Markup pricing refers to a pricing strategy wherein the price of a product or service is determined by calculating the sum of the products and a percentage of it as a markup. In other words, it’s the method of adding a percentage to a product’s cost to determine its selling price.

Detailed explanation-3: -Markup prices can be defined as the increase (by percentage) in the price of a product based on its original cost. Markdown prices are the rate (markdown percentage) decrease in the selling price of a product from its original selling price. The term discount is a more common term to describe markdown prices.

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.