Markup
Business: Cambridge International GCSE (2027 Exams), topic 5.5.7
Markup
Markup is a ratio based on the difference between the profit and cost of an item.
Markup
- Markup (%) = (Profit per item ÷ Cost per item) × 100
Purpose of markup
- Markup is often used by retailers to have a clear idea about what the gross profit margin of a sale will be.
Test yourself on Markup
A second-hand bookshop sells first edition novels. The cost per novel is £23. The profit per novel is £7. What is the markup (to 2 decimal places)?
A spirit shop sells premier gins. The cost per bottle is £76. The profit margin is £48. What is the markup (to 2 decimal places)?