MARKUP-PROFIT - Markup/Profit HUEC 3043 Initial Markup...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Markup/Profit HUEC 3043
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Initial Markup Initial Markup: Percent Markup needed to make a profit Calculated based on plan/forecasted figures Helps to determine retail pricing needs Accounts for Reductions Reductions are discounts, markdowns, shortages which will reduce net sales Factor in reductions to make sure the markup percent covers these expenses
Image of page 2
Calculating Initial Markup Formula for Initial Markup: Expenses + Profit + Reductions + Alterations - Cash Discounts Divide that Number by Net Sales + Reductions Can be calculated using percents or dollar figures. Always reported as a percent.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Initial Markup Need to analyze what numbers you need to calculate Initial Markup These numbers may be “Hidden” or needed to be calculated: Net Sales Expenses (Direct/Indirect) Reductions Alterations Cash Discounts Profit
Image of page 4
Initial Markup Tips for Calculating Initial Markup Net Sales is always 100% Reductions are typically listed out separately, I.e. Employee Discounts, Shortages, Markdowns, etc. (Ex 5-22) Information may be listed as percents and dollar amounts, convert all numbers to either percents or dollar amount. (Ex. 5-23) Customer Returns are not a part of Initial Markup.
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern