Algebra - Cost and Markup Amount
by Tim
(Murphysboro)
Cost and MarkupA
markup is the opposite of a
discount. A discount is a reduction in the selling price. It has nothing to do with cost.
A markup is the amount which is added to the cost of acquiring a product or service in order to create a profit when that product/service is sold.
Markup is the difference between the cost and the selling price.
Markup = Selling Price - Cost
Markup is the same as profit.
Markup = Profit
Cost + Markup = Selling Price
or
Cost + Profit = Selling Price
Markup is often expressed as a percentage.
% Markup-on-Cost.
Markup in % = ((Selling Price - Cost) / Cost) * 100
% Markup-on-Selling-Price.
Markup in % = ((Selling Price - Cost) / Selling Price) * 100
Find the missing numbers?
Selling price = $175.00
markup on selling price, markup rate = 50%.
What is the cost and markup amount?