Definition:

MARKUP (MU) — we define it as the difference between the current increase selling price (CuISP) and the previous selling price (PrSP).

The formula is written this way,

MU = CuISP – PrSP

NOTE:

We could also solve markup by multiplying the previous selling price and the markup rate.

The formula is written as follows:

MU = PrSP * MUR

where

MU = Markup

PrSP = Previous selling price

MUR = Markup rate

EXAMPLE 1:

Due to 10% EVAT the price of a certain item is increased. The previous selling price is Php958,759. (a) What is the markup? (b) What is the current increase selling price?

SOLUTION:

(a)

MU = PrSP * MUR

MU = 958,759 * 0.10

MU = Php95,875.9

(b)

MU = CuISP – PrSP

CuISP = MU + PrSP

CuISP = 958,759 + 95875.9

CuISP = Php1,054,634.9

Try This:

1) The previous selling price of an item was Php87,980 and it sold for Php109,985. (a) What is the markup? (b) What is the markup rate?

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