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Lecture

MKT 100 Lecture Notes - Profit Margin


Department
Marketing
Course Code
MKT 100
Professor
Marla Spergel

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MKT100 - Metrics Mastery
Worksheets
Worksheet: Metric 5 Mark-up & Margin
. 1) A computer software retailer uses a markup rate of 40%.
If the retailer pays $25 each for computer games sold in
its stores, how much do the games sell for?
Price = $25 x 1.4
= $35
2) A golf pro shop pays its wholesaler $40 for a certain club,
and then sells that club to golfers for $75. What is the retail
markup rate?
Markup = $75- $40 = $30
Markup Rate = ($35/$40) x 100
= 87.5%
3) A shoe store uses a 40% markup on cost. Find the cost of a
pair of shoes that sells for $63.
Cost = $63/1.4
= $45
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