By Dr. John T.
Drea,
Western Illinois University
Markup
lDefined:
the dollar amount added to the cost of sales to get the selling price.
lTwo
means of calculating markup
–on the basis of selling price
–on the basis of cost
lWe’ll
be calculating markup on the basis of selling price
–Markup % = (dollar markup)/selling
price
lTo
calculate selling price:
–Selling Price = cost/(1-markup)