Mark-up
Mark-up is gross profit expressed as a percentage of cost: gross profit divided by cost of sales times 100. To use a mark-up, multiply cost by one plus the mark-up rate to find selling price. In the example, 80 × 1.25 gives 100. If given a gross margin instead, divide cost by one minus the margin rather than applying the same percentage to cost.
Worked example
Cost 80 and selling price 100 yield gross profit 20 and mark-up 25%.
Common mistake
Gross margin is profit divided by selling price: 20% in the same example.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |