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for example if a profit sells for $ 100 and costs $ 70 to manufacture its margin is $ 30 or stated as a percentage the margin percentage is 30 % calculated as the margin divided by sales markup is the amount by which the cost of a product is increased in order to derive the selling priceto use the preceding example a markup of $ 30 from the $ 70 cost yields the $ 100 price or stated as a percentage the markup percentage is 42 9 % calculated as the markup amount divided by the product costor example if you know that the cost of a product is $ 7 and you want to earn a margin of $ 5 on it the calculation of the markup percentage is $ 5 margin $ 7 cost 71 4 % if we multiply the $ 7 cost by 1 714 we arrive at a price of $ 12
If markup on cost is 36%, what is the equivalent markup on retail?Answer: .361.36 = .26 What Should you Pay for Merchandise? You are considering vendors for private label shirts. You would like the retail price of the shirts to be $25.00. Your markup objective is 45% on retail.What is the highest price you can pay to meet this objective? Retail Selling Price = Cost of Merchandise + Markup$25 = X + $11.25100%= 55% + 45%So: 55% of $25 = $13.75 Determining the Most you Can Pay  A buyer for menâs clothing is seeking sport coats to retail for $125.The markup objective on retail is 48%.hat is the highest price you can pay to meet this objective? Retail Selling Price = Cost of Merchandise + Markup$25 = X + $11.25100%= 55% + 45%So: 55% of $25 = $13.75 Determining the Most you Can Pay  A buyer for menâs clothing is seeking sport coats to retail for $125. The markup objective on retail is 48%.