MANAGEMENT

Detailed explanation-1: -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.

Detailed explanation-2: -Calculating Sales Price Using Traditional Markup Multiply the total cost by the markup percentage to find the markup amount. Add the markup amount to the cost of the item to set the price. Suppose you paid $25 each for widgets, and you decide to use 100 percent markup. This is a common markup for retailers.

Detailed explanation-3: -Markup percentage is calculated by dividing the gross profit of a unit (its sales price minus its cost to make or purchase for resale) by the cost of that unit. If an item is priced at $12 but costs the company $8 to make, the markup percentage is 50%, calculated as (12 – 8) / 8.

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%.

Detailed explanation-5: -When markup is based on selling price the cost is 100 percent. To place a price on perishable items, there is no need to calculate the total cost as well as total selling price of the items. Selling price = cost-markup.