An easier way to remember is that in case of markup you use the formula say markup of 30% is markup = (1+0.30)* cost price But a margin of 30% is CP/0.70 is the margin.
$35 divided by 0.6 (on the calculator) = 58.33 The 0.6 is equivalent to 40% but expressed as a decimal because 100 - 40 is 60 and because 60 is lower than 100, it is calculated as 0.6
Hey Amanda, would it not be easier to use the below calculation to work out what my selling price would be if I know my MG% and cost : solve for selling SP = cost ($35) / 60% = $58.33 E.g 2 : my cost is $50 and i would like to make 20% MG, therefore my selling price would be $62.50
Really good explanation. Margin: SP is 100% Markup: Cost is 100% makes life so simple! For the second problem with 40% margin, wouldn't the following three steps be simpler? Profit = Cost Price + Margin x = 35 + 0.4x (40% of x Since margin is a primary function of profit) 0.6 x = 35 x = $58.33
thanks you very much for your help full lesson it be come easy for me now but my question is that what is difference between margin and markup? I'm a student from accounting and finance but i'm taking mathematics for finance in University of Gondar,Ethiopia
Very useful, thanks Amanda! I noticed you haven’t added any new videos in a few years, any chance you have any more content like this you could add to your channel? Would be very much appreciated! Thank you!
Sorry can't listen, your voice is one long mono tone. Extremely dull and boring, really not nice. The screen is confusing too. Why clutter it with pointless stuff like MC Chocolate Bar? that is an unnecessary screen filler that just adds to the overall mess.
I cannot believe how easy you made this for me! I have been having trouble grasping the whole process and after watching your video I finally get it. Thank you so much!!!
I was racking my brain trying to get an understanding of this concept before you put it so clearly. Separating the relationship between dollars and percentages, vs trying to combine and getting them mixed up, is what really helped me out.