BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -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-2: -According to Corporate Finance Institute, “markup is the difference between the selling price of a product and its cost.” The markup on cost is the amount added to the cost of a product or service to arrive at the selling price. The markup on cost is expressed in percentage terms.

Detailed explanation-3: -The difference between price paid and costs incurred is profit. If a customer pays $10 for a product that costs $6 to make and sell, the company earns $4 in profit.

Detailed explanation-4: -Cost price = Selling price − profit ( when selling price and profit is given ) Cost price = Selling price + loss ( when selling price and loss is given )

Detailed explanation-5: -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.