Mark Up

This topic has 5 replies, 2 voices, and was last updated 2 years ago by John Moffat.

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May 30, 2020 at 7:32 am #572267
victorwilson
- Topics: 19
- Replies: 27
Dear Mr. John,

All sales are made at Mark up on cost of 20%?

Is it 20/120 or 20%only on total.

Regards,
Victor
May 30, 2020 at 10:08 am #572278
John Moffat
Keymaster
- Topics: 57
- Replies: 50522
By definition, the profit is 20% of the cost and therefore the sales are 120% of the cost. The cost is therefore 100/120 of the sales, and the profit is 20/120 of the sales.

This is all explained, with examples, in my free lectures on mark-ups and margins.
May 31, 2020 at 8:35 am #572402
victorwilson
- Topics: 19
- Replies: 27
Dear Mr. John,

Answer says

(6700+84000-5400)*20%

=17060 Answer

Regards
Victor
May 31, 2020 at 3:16 pm #572426
John Moffat
Keymaster
- Topics: 57
- Replies: 50522
How I am supposed to check when you have not told me the question?!!!

Presumably the figures in your brackets are the cost, in which case the profit is 20% as is written, and as I wrote in my previous reply. If not, then either you have mistyped the question or there is an error in your book.

Have you actually watched my free lectures on mark-ups and margins?
June 1, 2020 at 7:18 am #572471
victorwilson
- Topics: 19
- Replies: 27
Dear Mr. John

As per the soluation of your lecture :

Margin 40%= 15000

Therefore: 15000*60%=9000

Mark up 40% =15000

Therefore 15000*100/140=10714.2

If this is correct

Regards,

Victor
June 1, 2020 at 10:16 am #572491
John Moffat
Keymaster
- Topics: 57
- Replies: 50522
I do not know which example you are referring to. None of the examples in my lecture has the figures that you are quoting.
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