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: -Cost-plus pricing is also known as markup pricing. It’s a pricing method where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost). The resulting number is the selling price of the product.

Detailed explanation-3: -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-4: -For example, if a product cost $50 and the business wanted to make a 15 percent profit, then the selling price would be $57.50. In this example, our cost was $50 and the profit plus one would be 1.15.