Firstly, let’s start off by figuring out how to calculate just the Profit Mark-up percentage. Look at the
formula below:
Let’s try the above formula with the questions below:
1. Jacket selling price of R700 and a cost price of R350 =
2. TV selling price of R16 000 and a cost price of R9 550 =
3. Cell phone selling price of R2 225 and a cost price of R4 500 =
4. Car selling price of R635 000 and a cost price of R512 500 =
5. Oreos selling price of R24.99 and a cost price of R16.50 =
Now that you have a better understanding of calculating the mark-up %, let’s see what happens
when you have information missing.
Golden Rules:
a)
b)
c)
d)
e)
Profit = selling price > cost price
Loss = selling price < cost price
Selling Price = Cost Price + Profit Mark-Up
The unknown amount you are looking for is always on top.
The Cost Price (CP) always starts at 100%.
Calculations:
CP = (100 / 100% + PM(%)) x SP
SP = CP + (CP x (PM/100%)
PM = ((SP – CP) /CP) x 100
Extra practice calculations:
Profit mark-up (%)
1.
Cost Price
R3 000
2.
R3 000
150%
Selling Price
R4 500
3.
80%
R360
4.
20%
R4 500
5.
R1 800
6.
R2 500
7.
R16,80
8.
R1 400
R1 680
9.
R1 960
R2 450
10.
R745
33%
R7 500
16%
66,66%