I am studying accounting in college. I have read a section on mark-up percentage and I don't understand where they are getting thier numbers from. They say calculate markup like:
Markup percentage = markup over Sales price. As example they give: a cd reltailers is: Markup percentage= $7.00 over $15.00 = 46.7%. But where are they getting that number? When you put a number over another number doesn't that mean divided by? If thats the case then it doesn't work out. I don't get it, can someone please explain in laymans terms? It would be appreciated. Thanks.
2007-06-11 11:00:21 · 9 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
7 / 15 = .467 = 46.7%
That is 7 over 15 is the same as 7 divided by 15.. The answer is .46666666666 which rounds to .467
percentage is always a decimal number multiplied by 100.. So .467 in percentage would be 46.7%
2007-06-11 11:03:30 · answer #1 · answered by ........ 5 · 2⤊ 0⤋
In layman's terms, the markup is the amount an item sells for minus the amount the retailer pays for it. As an example, suppose an item costs $20 from a distributor, and the retailer wishes to sell it for $28 to the consumer. The markup is $28 - $20 = $8.
The markup percentage, then, is the percentage over the cost. In my example, the markup percentage is $8 / $20 = 0.40 = 40%. (Percents are 100 times the decimal number.)
In your example, if the markup is $7 and the original cost was $15, it means the retailer is trying to sell the cd for $22... and the markup percentage is 7 / 15 = 0.466666... Moving the decimal point two places, it's 46.6666...%, which rounds to 46.7%.
Hope this helps, and best of luck! :)
2007-06-11 11:08:16 · answer #2 · answered by Louise 5 · 0⤊ 0⤋
when you divide 7 by 15 you get 0.4666666 which is essentially 46.7/100 or 46.7%
The markup is how much higher the asking price is from what the retailer paid for it. Example, if you buy a tv for 80 dollars from a distributor and you want to sell it for 100, then you are asking 20 dollars more than what you paid for. 20/100 is 20% so that's the markup percentage.
2007-06-11 11:06:40 · answer #3 · answered by Philip H 2 · 1⤊ 0⤋
That is the number that the retailer put to the item based on how fast it will sell and how much profit is needed to stay in business. If you divide the # 7 by 15 you will get the decimal equivalent of the percentage 46.7% It will appear on the calculator as .466666666
2007-06-11 11:07:24 · answer #4 · answered by Big Deall 4 · 0⤊ 0⤋
If you buy an item whole sale for 10$,and you sell it for 15$,
markup is 50%. It is the percentage of the buying price, and how much you actually made selling an item.
2007-06-11 11:11:19 · answer #5 · answered by Dragon'sFire 6 · 0⤊ 0⤋
7 divided by 15 is 0.4666666. In the example, the sales price is $15, of that amount $7 is want the store wants above the acquisition cost of the item, to cover expenses and earn a profit. In this case the acquisition cost is $8 (15 - 7).
2007-06-11 11:07:52 · answer #6 · answered by regerugged 7 · 1⤊ 0⤋
when you put 7 over 15 you get .466666666666666666, and so on.
in a percentage form, which means you move the decimal two places to the right, it's 46.66666% [rounded it's 46.7%]
2007-06-11 11:26:02 · answer #7 · answered by afskjdsgflhf 2 · 0⤊ 0⤋
7/15=.467 (rounded off)
To change to percentage, multiply by 100:
.467 x 100 = 46.7%
2007-06-11 11:05:35 · answer #8 · answered by gm 2 · 1⤊ 0⤋
yes
2007-06-11 11:03:29 · answer #9 · answered by dcomo1 2 · 0⤊ 2⤋