BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Calculating Markup and Price The equation used to add a markup percent to a product is the cost plus the markup percentage multiplied by the cost. Suppose the cost of the item is $75 and you are using a markup of 60 percent. Multiply $75 times 60 percent. This give you $45.

Detailed explanation-2: -For example, if an item costs a business $5 to produce and it sells it for $8, the extra $3-its gross profit-represents a 60% markup percentage.

Detailed explanation-3: -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-4: -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%.