The cost of an apple
- Thread starter Odio
- Start date
yes
Markup = ( FC / DC ) - 1 = ( 2.4 / 2 ) -1 = 20%
Margin = 1 - ( DC / FC ) = 1 - ( 2 / 2.4) = 17%
Gross Profit Margin = Sales Price - Unit Cost | GP = $2.40 - $2.00 | GP = $.40
Markup Percentage = Gross Profit Margin/Unit Cost | MP = $.40/$2.00 | MP = 20%
Gross Margin Percentage = Gross Profit/Sales Price | GM = $.40/$2.40 | GM = 16.666667
yep, looks like the chart works
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fartiusstinkius
Veteran XV
The question of the definition of "markup" isn't really mathematical...
you guys are all idiots. you need to draw the supply and demand curves for apples to figure this one out:
is that an apple treasure map?
In Vanster's defense, I have also heard of markup as the percentage of the final selling price, not the cost of goods.
However, as fart points out, the cause of disagreement in whether it's $2.40 or $2.50 is not mathematical error as Vanster originally implied.
Flash
Veteran XX
Vanster's question implied that the mark up was being applied to the cost of the product.
Yes, it seems worded that way.
By "originally implied", I'm refering to Vanster's original reason for bringing up his anecdote. It was a response to Rayn's comment of people being awful at math.
Retail Markup Markdown Calculator
To be fair, his original point still stands. He just ended up on the wrong side of the fence.
To be fair, his original point still stands. He just ended up on the wrong side of the fence.
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retail sales price: $2.40
gross profile/loss: $.3999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999
so vanster is dumb.
