ADMS 2200 Chapter : Pricing Worksheet.pdf

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: Richard Patterson

Document Summary

Here, we are giving you some guidelines and sample questions to explore as you refine your grasp of the essential marketing arithmetic that every marketer needs! Gross margin = (retail price - cost) x 100% markup = (retail price - cost) x 100% Make sure you are absolutely clear on this fundamental relationship! It shows how the final retail selling price of an item has two components. One is the amount the retailer paid for the item. (cost of goods sold, or cogs). The other is the money the retailer gets to keep, which is the retail gross margin, or the markup on cost. This money will go first towards fixed costs, then to profit. This means that we can express retail price as. 100% and the cogs and gross margin must add up to 100%. (e. g. 67% + 33% =