01-05-2021

Marked Up



Markup (or price spread) is the difference between the selling price of a good or service and cost. It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit. The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product.[1] Markup can be expressed as a fixed amount or as a percentage of the total cost or selling price.[2]Retail markup is commonly calculated as the difference between wholesale price and retail price, as a percentage of wholesale. Other methods are also used.

Find 217 ways to say MARKED UP, along with antonyms, related words, and example sentences at Thesaurus.com, the world's most trusted free thesaurus. To make markings on something, often in a way that defaces it. In this usage, a noun or pronoun can be used between 'mark' and 'up.' It looks like a child got their hands on these legal documents and marked them up with crayon. Skee.TV presents Marked Up Episode 1 featuring pro BMX rider Rick Thorne & Celebrity tattoo artist Danny Balena. Marked Up is a new look into the culture.

Price determination[edit]

Profit[edit]

  • Assume: Sale price is 2500, Product cost is 1800

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Marked Up Pdf

Profit = Sale price − Cost[3]
700 = 2500 − 1800

Markup[edit]

Below shows markup as a percentage of the cost added to the cost to create a new total (i.e. cost plus).

  • Cost × (1 + Markup) = Sale price
or solved for Markup = (Sale price / Cost) − 1
or solved for Markup = (Sale price − Cost) / Cost
  • Assume the sale price is $1.99 and the cost is $1.40
Markup = ($1.99 / 1.40) − 1 = 42%
or Markup = ($1.99 − $1.40) / $1.40 = 42%
  • To convert from markup to profit margin:
Sale price − Cost = Sale price × Profit margin
therefore Profit Margin = (Sale price − Cost) / Sale price
Margin = 1 − (1 / (Markup + 1))
or Margin = Markup/(Markup + 1)
Margin = 1 − (1 / (1 + 0.42)) = 29.5%
or Margin = ($1.99 − $1.40) / $1.99 = 29.6%

A different method of calculating markup is based on percentage of selling price. This method eliminates the two-step process above and incorporates the ability of discount pricing.

  • For instance cost of an item is 75.00 with 25% markup discount.
75.00/(1 − .25) = 75.00/.75 = 100.00

Comparing the two methods for discounting:

  • 75.00 × (1 + .25) = 93.75 sale price with a 25% discount
93.75 × (1 − .25) = 93.75 × .75 = 70.31(25)
cost was 75.00 and if sold for 70.31 both the markup and the discount is 25%
  • 75.00 /(1 − .25) = 100.00 sale price with a 25% discount
100.00 × (1 − .25) = 100.00 × .75 = 75.00
cost was 75.00 and if sold for 75.00 both the profit margin and the discount is 25%

These examples show the difference between adding a percentage of a number to a number and asking of what number is this number X% of. If the markup has to include more than just profit, such as overhead, it can be included as such:

  • cost × 1.25 = sale price

or

  • cost / .75 = sale price

Aggregate supply framework[edit]

P = (1+μ) W. Where μ is the markup over costs. This is the pricing equation.

W = F(u,z) Pe . This is the wage setting relation. u is unemployment which negatively affects wages and z the catch all variable positively affects wages.

Sub the wage setting into the price setting to get the aggregate supply curve.

P = Pe(1+μ) F(u,z). This is the aggregate supply curve. Where the price is determined by expected price, unemployment and z the catch all variable.

See also[edit]

References[edit]

  1. ^Pradhan, Swapna (2007). Retailing Management. Tata McGraw-Hill. ISBN978-0-07-062020-9.
  2. ^Ingels, Jack (2009). Ornamental Horticulture: Science, Operations, & Management. Cengage Learning. p. 601. ISBN978-1-4354-9816-7.
  3. ^Farris P.W., Bendle N.T., Pfeifer P.E. and Reibstein D.J. (2010). Marketing metrics : The Definitive Guide to Measuring Marketing Performance, Pearson Education.
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mark up

1. To make markings on something, often in a way that defaces it. In this usage, a noun or pronoun can be used between 'mark' and 'up.' It looks like a child got their hands on these legal documents and marked them up with crayon. We'll have to reprint them.Unfortunately my new white shoes got marked up when I wore them on that walk that turned into a hike.

Marked Up Copy Definition

2. To write on or make informative markings on a document. In this usage, a noun or pronoun can be used between 'mark' and 'up.' I like to mark up my students' papers with a lot of comments in the margins so that they understand the grade I gave them.Please go through the document and mark it up with any suggestions you have.
3. To increase the price of something, especially in the process of setting the initial price, as a way to ensure that a profit is made from its sale. In this usage, a noun or pronoun can be used between 'mark' and 'up.' Movie theaters mark up the price of popcorn and candy really high because those are their main money-makers.I expect the store to mark the price up after the holiday sale, so we might as well buy it now.
Farlex Dictionary of Idioms. © 2015 Farlex, Inc, all rights reserved.

mark something up

1. to mess something up with marks. Don't mark up your book!Who marked this book up?
2. to grade a paper and make lots of informative marks and comments on it. The teacher really marked up my term paper.Why did you mark my test up so much? I hardly made any errors.
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Marked Up Price

3. to raise the price of something. The grocery store seems to mark the price of food up every week.They don't mark up the price of turkey at Thanks giving.
McGraw-Hill Dictionary of American Idioms and Phrasal Verbs. © 2002 by The McGraw-Hill Companies, Inc.

mark up

1. Deface by drawing, cutting, or another means of covering something with marks. For example, John was punished for marking up his desk, or These shoes really mark up the floor.
2. Raise the price of something, as in This small shop marks up its merchandise much more than department stores do. [Second half of 1800s]
The American Heritage® Dictionary of Idioms by Christine Ammer. Copyright © 2003, 1997 by The Christine Ammer 1992 Trust. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

mark up

v.
1. To cover something with marks, especially defacing it: The rubber balls the kids threw in the hallway marked up the walls. The broken vacuum cleaner marked the floors up.
2. To write comments or corrections directly on some document: The teacher had marked up everyone's papers before passing them back to us. The committee marked the report up with comments and questions.
3. To raise the price of something put on sale: You'd better buy the shoes now before they mark them up. The new owners marked up the entire inventory.
The American Heritage® Dictionary of Phrasal Verbs. Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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