MANAGEMENT

Detailed explanation-1: -Markup is the percentage amount by which the cost of a product is increased to arrive at the selling price.

Detailed explanation-2: -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-3: -Markup is the amount by which the cost of a product is increased in order to derive the selling price.

Detailed explanation-4: -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.

Detailed explanation-5: -Markup (or price spread) is the difference between the selling price of a good or service and cost. It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.