MKT 600 Lecture Notes - Lecture 17: Profit Margin
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Section 131: a computer software retailer uses a markup rate of 40%. The markup is 40% of the cost, so the markup is: . Then the selling price, being the cost plus markup, is: . Therefore the games sell for : a golf pro shop pays its wholesaler for a certain club, and then sells that club to golfers for . The gross profit in dollars is calculated as sales price less cost: . Markup (%) = gross profit / cost *100 (35/40) * 100% = 87. 5: a shoe store uses a 40% markup on cost. Find the cost of a pair of shoes that sells for . The cost of the shoes is calculated as follows: 63/1. 4 = : in 2009, donna manufacturing sold 100,000 widgets for each, with a cost of goods sold of . First we have to calculate the gross profit:, 000. Gross profit = selling price - cost of goods sold.