Markup


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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This world is now my " new " world! #iPlus1forFun! ;) View all posts by loadplus

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