BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Simply take the sales price minus the unit cost, and divide that number by the unit cost. Then, multiply by 100 to determine the markup percentage. For example, if your product costs $50 to make and the selling price is $75, then the markup percentage would be 50%: ( $75 – $50) / $50 = . 50 x 100 = 50%.

Detailed explanation-2: -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-3: -It means that you buy a product and then sell it for double the price. This is because a markup of 100% implies that your profit equals your cost, and profit is the difference between the revenue and cost.

Detailed explanation-4: -Using an alternative approach, the markup percentage can be calculated by taking the gross profit and dividing it by the cost of goods sold (COGS). The distinction between the gross margin and the markup percentage is that the gross margin is divided by revenue, whereas the markup percentage is divided by COGS.