Markup vs Margin: Understanding the Difference
Ever wondered about the difference between markup and margin? These two terms often confuse business owners and students alike. Let’s break them down in simple terms! Markup: Adding to Your Cost Markup is the amount you add to your cost to set your selling price. It’s always based on your cost. Formula: Markup % = (Selling Price - Cost) / Cost x 100 Example: You buy a t-shirt for $10 and sell it for $15. Markup = ($15 - $10) / $10 x 100 = 50% ...