Cost Price / Selling price and markup

Why is there a need for a markup?

1. The business incurs expenses in order to be in a position to sell goods or services, and the markup covers these expenses. 2. it also needs to make a profit for purposes of future expansion of the business and the markup must cover this as well. 3. The people involved in the running of the business must be paid wages and salaries and the markup must cover these as well.

How to calculate cost price given the markup percentage and the selling price?

Cost price = Selling price x 100/ (100+markup percentage)

What is cost price?

Cost price is 1. the price the business buys goods for that it is going to resell OR 2. it is the cost to the business of creating an item that it is going to resell OR 3. it is the cost to the business of providing a service

How to calculate markup percentage given the cost price and the selling price.

Markup Perc = ((selling price- cost price) / cost price) x100

What is markup?

Markup is the difference between the cost price and the selling price of an item or service that the business provides.

How to calculate Selling price given the cost price and the markup percentage

Selling price = Cost price x (100 + markup percentage)/ 100

What is selling price?

This is the price at which the business sells its goods or services.