What does MARK-UP mean?

This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.

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September 13, 2012 at 2:31 am #47067
sunnyfish2001
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In Chapter3 Lifecycle costing example1,
The company wishes to achieve a mark up of 50% on cost.
In the calculation, teacher calculated total selling price first. It is 525,000. Then use 50%multiplied by 525,000. Cost is 262,500. Is it right?
In my opinion, I would like to calculate cost 525,000*1/(1+50%)=350,000
I am looking forward to an answer. Thank you!
September 15, 2012 at 8:26 am #75453
John Moffat
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Which lecturer??? There is no lecture on this chapter on the website.
The answer to the example is at the back of the Course Notes, and your answer is correct – the target cost is $7 per unit (which is 350,000 in total).
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