5.3 MARKUP - if Selling price is greater than(cost...

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5.3 MARKUP THE SELLING PRICE OF AN ITEM SET BY A BUSINESS INCLUDES: cost of purchasing the item for the business (trade discounts may apply here) operating expenses or overhead must be paid (such as wages, rent, leases and utilities) profit made on the item which is income after costs and expenses are paid if Selling price is less than (cost + expenses) ….………results in a “loss”
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Unformatted text preview: if Selling price is greater than (cost + expenses)………results in a “profit” Selling price = Cost + Expenses + Profit S = C + E + P Markup (or margin) M = E + P ∴ Selling price = Cost + Markup S = C + M Rate of Markup = Markup X 100% based on Cost Cost Rate of Markup = Markup X 100% based on Selling price Selling price...
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