Chapter 9 - Markup based on cost

Markup (formula)

= Selling price - Cost

Markup (gross margin)

= Selling price - Cost

selling price (formula)

= cost + markup

rate of markup by markup and cost

= markup / cost (100%)

cost by markup and rate of markup

= markup / rate of markup

rate of selling price by rate of cost and rate of markup (cost)

= rate of cost + rate of markup (cost) = 100% *if markup is based on cost ,the cost percent is 100% and the selling percent is 100% + the markup percent

Cost (formula)

= selling price - markup

cost by selling price & percent of markup

= selling price / rate of selling price based on cost

basic percentage formula

P = RB or percentage = rate * base

Markdown

amount the original selling price is reduced

Net profit

difference between gross margin, operating expenses, and overhead

markup (basic percentage formula) by rate and cost

markup = rate of markup * cost

cost

price at which a business PURCHASES merchandise

selling price (retail price)

price at which a business SELLS merchandise