MARK-UP - Markup HUEC 3043 Markup Markup is: Amount added...

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Markup HUEC 3043
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Markup Markup is: Amount added to cost figure to determine retail cost Expressed as a dollar figure or percent Calculated based on cost or retail price points One of the basic concepts and must understand how markup affects buying decisions
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Markup Predetermined markup dollars or percents are set to ensure that gross margin is in line, all the expenses are covered, and profit goals are met Primarily expressed as a percent Markup percent goals may vary between departments
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Markup Markup is calculated very simply: Markup= Retail - Cost Cost= Retail - Markup Retail= Cost + Markup Formulas work for both dollars and percents
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Calculating Markup % Markup % = Markup $ / Retail $ Markup Percent is based on either Retail or Cost Retail Markup Percent will always be under 100% Cost Markup Percent could be over 100% **Markup Percent based on cost is seldom used by larger retailers…sometimes used by smaller retailers
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This note was uploaded on 02/14/2012 for the course HUEC 3043 taught by Professor Freeman during the Fall '10 term at LSU.

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MARK-UP - Markup HUEC 3043 Markup Markup is: Amount added...

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