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If your Gross Profit is 12.5% of Selling Price, that means your Cost of Goods Sold is 87.5% of Selling Price.
1/.875 = 1.143
So you need a 14.3% markup to achieve a 12.5% Gross Profit.
Example: Cost = $100
Selling Price = $100 x 1.143 = $114.30
Gross Profit = $114.30 - $100.00 = $14.30
14.30/114.30 = 12.5%
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What is the average profit margin for a small company?
When we speak of margin we are referring to the fact that we are comparing the profit as a fraction of net sales (Turnover). It is usually referred to as the gross profit margin and one must not confuse this with gross profit mark-up which is expressing gross profit as a percentage of the cost price of goods sold. Naturally the average is the result that we achieve when we compare the gross profit for one year with the Turnover of the same year and express it as a percentage.
Is it common for a service company to charge eighteen percent on everything even their labor?
No. 18% is very low. Most companies will want to make 35 - 50% Gross Profit on parts and 65 - 80% on labor. So you would charge $100 for a part which costs $60; and charge $100 for an hour's labor when you pay the employee $25/hr. Even a law firm or accounting firm will mark up labor by more than 18%, although their gross profit on labor (hours) will not be as high as other industries.
The cost of an item is Rs 12.60 If the profit is 10 percent over selling price what is the selling price?
Cost = 12.6010% markupPROPER Math for MARK UP: 12.6 divided by 0.9 = 14.00The math is done this way so if you reduce the price by 10% you get to your original cost (close anyway)
Why a company may not achieve its target gross margin?
Mark up is lower than desired or large impairment losses of inventory. Stock theft or stock damage could be a reason.
How do you find the cost inventories on the 25 percent mark up?
If a product is purchased for 100 and 25% mark-up is added then the selling price will be 125.Therefore cost for inventory purposes can be calculated by finding cost as a percentage of selling (100/125 x 100 = 80%)or for any percentage mark-up1-(m/(1+m))where m= markup1-(.25/(1+.25)) =0.8 or 80%
What is the price if cost is 1515.08 and your gross margin is 22 percent?
Based on this scenario, the following will be true: Gross profit: $428.48 Revenue: $1,946.26 Mark up: 28.21%
If James gross profit mark up is 25 percent then his margin on sales will be 20 percent.Yes Or No?
No, gross profit and markup are two different things. Gross profit is expressed as a percentage of the sales price, and markup is expressed as a percentage of the cost. For example the Gross Profit on something that costs $100 that is being sold for $143 is 30% GP. The markup on that same item is 43%. Bottom line, you can't have a "gross profit markup". There's a Gross Profile Margin, and a Markup.
What is the average profit margin for a small company?
When we speak of margin we are referring to the fact that we are comparing the profit as a fraction of net sales (Turnover). It is usually referred to as the gross profit margin and one must not confuse this with gross profit mark-up which is expressing gross profit as a percentage of the cost price of goods sold. Naturally the average is the result that we achieve when we compare the gross profit for one year with the Turnover of the same year and express it as a percentage.
What is the sale if gross margin mark-up is 40 of cost?
Could be anything, 40 is gross profit after costs of goods sold is deducted.
A percent of the cost of an item added onto the item's cost?
Mark-up, it is not profit. Profit must account for other fixed costs associated with selling
When was Mark Gross born?
Mark Gross was born in 1966.
Is it common for a service company to charge eighteen percent on everything even their labor?
No. 18% is very low. Most companies will want to make 35 - 50% Gross Profit on parts and 65 - 80% on labor. So you would charge $100 for a part which costs $60; and charge $100 for an hour's labor when you pay the employee $25/hr. Even a law firm or accounting firm will mark up labor by more than 18%, although their gross profit on labor (hours) will not be as high as other industries.
Is it legal for a campground to make a profit off of a public utility such as electric?
A private company can make a profit on anything. Yes, they can mark up electricity.
Is Mark Calloway related to Micheal Gross?
No. Mark Callaway (The Undertaker) Is no Related to a Michael Gross.
What percentage profit will a grocer make on an article he brought for 40.00 if he sold it for 50.00?
25% profit. Thats 25% mark up so that means 20% profit on return: MJC
How much per cent above the cost price should a shopkeeper mark his goods so as to earn a profit of 26 percent after allowing a discount of 10 percent on the marked price?
40 % markup. 1.40 - 10% (.14) =1.26 where 1.00 is 100% 26% profit
How do you calculate selling price if you know cost price and profit percentage.?
If you know the trade price, and the the mark-up (profit) - simply multiply the trade price by the percent mark-up plus 1. Using your example - you have a phone which you bought at 1500 trade, and you want 50% profit, then the selling price is 1.5 x 1500 which is 2250.
