Below question from Kaplan Chapter 2 Example 7:
A product has a total production cost of $60. Determine the selling price for the product if the company wants to achieve:
(a) A 20% mark-up on total production cost
Answer is $72
(b) A 20% margin on total production cost
Answer is $75
Is there anyone can tell me why Mark-up SP is $72 and Margin SP is $75 please? I thought for some product Mark-up will give a higher price than Margin?
Many thanks,