what does markup precentage mean?

Answer 1

There are two categories of determining a selling price; by margin and by markup. This calculator deals with markup. There are two methods of calculating markup percentage which yield two entirely different sets of results. The generally accepted method is that of markup percentage based on the selling price. The second is used most often in labor intensive industries where markup percentage is based on the cost of goods sold, including labor. In both methods, cost of goods sold should be indicative of ALL costs incurred to get the product to market in order to give a more accurate portrayal of profits. In our calculator below, first select one of the base methods of expressed markup percentage. Next, select the one option of the group of the four possible known data selections

Answer 2

Markups in the retail business are based on selling price, not on cost. It is, therefore, impossible to have a markup over 100%. Also, markups are very similar to gross margin on total sales, which is another reason markups are based on selling price. Most students get this wrong because they don't really know much about how retailing works.

Answer 3

A price is set by profit margin. At cost is how much it costs to acquire something. Markup considers additional costs of handling and selling it with a profit margin included.

Answer 4

Markup percentage is by how much percent a product's price is increased. For example:

A T-shirt costs 10 dollars. there was a markup of 1 dollar, or ten percent.

Answer 5

the percentage of cost that is added to a price by the retailer.

if i had a 1 dollar bar, and it had a markup of 100% it would cost
1 + (1.0 * 1) = 2 dollars

if it had a 150% markup it would be
1 + (1.5*1) = 2.5 dollars

Answer 6

Say for instance that you buy something for $10.00 then turn around and re-sell it for $20.00 that's 100% mark up because you doubled your money. It's the amount of money that a retailer hikes up the prices.