Originally Posted by maxnharry,22 Dec. 2004, 5:20
I'm not certain about how this works in retail speak, but the math is very plain... A $1.00 item marked up 50% sells for $1.50 A $1.00 item marked up 100% sells for $2.00 Ah, but apparently traditional math does not apply to retail...so the question is: what exactly is the correct calculation? Jon.
maxnharry's math is correct. Â I think what has thrown people off is confusing "markup" with "gross margin" Markup = The percentage of the cost of a product added to cost in order to arrive at a selling price. Â In other words, (selling price less cost) divided by cost
Gross margin = The difference between net sales and cost of goods sold expressed as a percentage. Â In other words, (selling price less the cost) divided by the selling price