BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -M is markup amount: Markup is the amount of money that has to be added to the cost of the item to cover for expenses and produce profit from sale of the item.

Detailed explanation-2: -Definition: Mark up refers to the value that a player adds to the cost price of a product. 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.

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: -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-5: -Margin is equal to sales minus the cost of goods sold (COGS). Markup is equal to a product’s selling price minus its cost price. Confusing profit margin vs. markup can lead to accounting and sales errors. For example, you might end up either under-or overpricing your products, which can cut away into your profits.