Mark-up and margin: finding a missing figure
A trader who prices everything the same way gives you a link between cost and sales. Use it to find the figure that is missing.
Task 1Two ways to state the same profit4 questions
When records are missing, a trader's usual pricing fills the gap. Asha Wren owns Wren Gifts and prices everything in the shop the same way.
- Mark-up
- gross profit as a percentage of cost
- Margin
- gross profit as a percentage of the selling price
A framed print costs Asha £60 and sells for £75. The profit is £15 either way. Only what it is measured against changes.
Task 2From cost of sales to sales, with a mark-up2 questions
Task 3From sales to cost of sales, with a margin4 questions