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