[carpulet]

Workings from Example in lectures
Cost 100% 7.00
+ Markup 50% 3.50
= S Price 150% 10.50

Markup
How I understand it;

Cost 100% 10.5 If 100%, then no need to do any working here
Markup 50% 5.25 50%, therefore 50% of 10.50
SP 150% 15.75 150%, and therefore 150%, of the 10.50

Margin
How I understand it;

Cost 50% 5.25
Markup 50% 5.25
SP 100% 10.50

Hi Mr Moffat

Many thanks for your support to us students, it is immensely appreciated. I am confused as to how the markup and margin has been calculated in the example given in the target costing.
I have written above my computation as to how I understand it and have compared it to the working example in the lectures and am still confused kindly assist me to clarify and to understand it properly.

Once again many thanks for all your support

[Author]

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