Markon


Definition:

MARKON (MO) — we define it as the difference between the initial cost (IC) and the selling price (SP).
Hence, we say,
MO = SP – IC

Note:
We could also solve markon by multiplying initial cost and the markon rate. The formula is given as follows:

MO = IC * MOR
where
MO = markon
IC = initial cost

EXAMPLE 1:
Mr. Vasques bought an item for Php450 and sells it for Php540. (a) What is the markon? (b) What is the markon rate?

SOLUTION:

(a)
MO = SP – IC
MO = 540 – 450
MO = Php90

(b)
MOR = MO/IC
MOR = 90/450
MOR = 0.20
MOR = 20%

TRY THIS:
1)
IC = Php180
MO = Php27
SP = ?

2)
IC = Php7,500
MO = Php1,000
MOR = ?

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