ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Accounting => Topic started by: bopper69 on November 10, 2011, 07:45:01 pm

Title: Mark up
Post by: bopper69 on November 10, 2011, 07:45:01 pm

Sorry if this is a dumb question, but I've never understood how to calculate mark up when it's not 100%. Like 50% or 200%. Is there any kind of method on working it out? Thanks.

Title: Re: Mark up
Post by: Random_Guy on November 10, 2011, 07:56:56 pm

When it's 100% mark-up, you multiply the cost price by 2. That's easy. When it's 50%, you multiply the cost price by 1.5. 200%, you multiply the cost price by 3.

Title: Re: Mark up
Post by: bopper69 on November 10, 2011, 08:00:19 pm

Exactly what I was looking for. Thank you and good luck with tomorrow.

Title: Re: Mark up
Post by: Wezanator123 on November 10, 2011, 08:25:54 pm

What if they told us the Mark up but not the cost price, how would we work the cost price out ?

Title: Re: Mark up
Post by: likeialwaysdo on November 10, 2011, 08:28:11 pm

for selling price: SP = CP X (1+MARKUP/100)
for cost price: CP = SP / (1+MARKUP/100)
for Markup: MARKUP = ((SP/CP)-1)X100

The original formula is the selling price, the other 2 is when you re-arrange it

Title: Re: Mark up
Post by: Random_Guy on November 10, 2011, 08:41:13 pm

You divide instead. Eg. Mark up of 50%. You divide the Selling Price by 1.5 to get the Cost Price.