ECONOMICS

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: -Profit on cost will be = 33.33% Was this answer helpful?

Detailed explanation-3: -Gross profit margin shows whether a company is running an efficient operation and how profitably it can sell its products or services. It is also known as gross margin.

Detailed explanation-4: -What is my profit for markup 40% given cost of $50? The answer is $20. To get this result, use the formula markup = 100 × profit / cost . We transform it to profit = markup × cost / 100 and plug in the numbers: profit = 40 × 50 / 100 = $20 .