Quote:
|
Originally Posted by SJSobczyk
I hate to get off topic again but this needs correction as well. Markup cannot be figured out by simple multiplication.
MARKUP
$1.00/(1-40%) = $1.67
DISCOUNT
$1.67 x 0.75 (25% discount) = $1.25
Steve
|
I would think that markup means the amount marked up from cost. So a 40% markup from $1 is $1.40. Whereas 40% is the gross margin for an item that was marked up by 67% from $1 to $1.67 (.67/1.67).
See:
http://www.cbsc.org/servlet/ContentS...GuideFactSheet (See bottom of page)
http://www.dinkytown.net/java/ProfitMargin.html
http://www.csgnetwork.com/marginmarkuptable.html