Big Als Closing Down

[Samw]

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