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. For example, a FMCG company sells a bar of soap to the retailer at Rs 10. This is the cost price.

Detailed explanation-2: -Markup is what you add to prices in order to make money. It’s expressed as a percentage. Many businesses set their prices by working out what it costs to provide goods and services, then marking up that amount by a percentage. Markup is entered as a decimal. For example, a 35% markup is shown as 0.35.

Detailed explanation-3: -Markup is the difference between a product’s selling price and cost as a percentage of the cost. For example, if a product sells for $125 and costs $100, the additional price increase is ($125 – $100) / $100) x 100 = 25%.

Detailed explanation-4: -3. Net Profit. Net profit (also called net income or net earnings) is the value that remains after all expenses, including interest and taxes, have been deducted from revenue.

Detailed explanation-5: -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.