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Scholar Name: __________________________________________ID ___________ Worksheet: Metric 5 Mark-up , Margin 1) A computer software program retailer uses a markup charge of 40%. If the dealer pays $25 each to get computer games sold in its shops, how much do the games cost? Answer: The markup is usually 40% of the $25 expense, so the markup is: (0. 40) 2. ($25) sama dengan $10 Then a selling price, becoming the cost additionally markup, is: $25 + $10 sama dengan $35 And so the games cost $35.

2) A golf pro shop pays their wholesaler $40 for a particular club, then sells that club to golfers for $75.

What is the full markup level? Answer: The gross earnings in dollars is determined as sales price significantly less cost: $75 , $40 = $35 The markup rate can then be calculated: Markup (%) = Gross Revenue / Price *100 = $35 / $40 *100 = 87. 5% 3) A footwear store utilizes a 40% markup on expense. Find the expense of a pair of shoes that provides for $63. Answer: The expense of the shoes is calculated the following: Selling Price sama dengan Cost & Markup ($) = Cost + (Markup (%) 5. Cost) $63 = Expense + (40% * Cost) $63 = Cost & (0. some * Cost) $63 = (1 + 0. 4) * Price $63 sama dengan 1 . 5 * Expense Cost sama dengan $63 / 1 . 5 = $45 ) Last season, Donna Developing sold 90, 000 icons for $5 each, using a cost of goods sold of $2. What is the company’s margin %? Recognize a way that Donna Making can boost its revenue margin? Solution: First we have to calculate the gross profit: Gross Profit = Selling Price ” Expense of Goods Marketed = $5 , $2 = $3 Now we could calculate the margin: Margin (%) = Gross Revenue / Revenue * 75 = $3 / $5 * 90 = 60 per cent Ways to raise the profit margin: , Decrease cost of materials , Reduce cost of production , Boost sales value per product , Reduce COGS ) If a product costs $100 and is offered with a 25% markup in a store, what would be the retailer’s margin on the item? What should be the markup and selling price in case the retailer needs a 25% margin? For what reason might the retailer always be seeking to enhance their margin? Solution: a) To calculate the margin, all of us first need to determine the sales value: Markup ($) = Markup (%) 5. Cost sama dengan 25% * $100 = $25 Selling Price = Expense + Markup ($) = $100 & $25 sama dengan $125 Perimeter (%) = Markup / Price * 100 = $25 / $125 2. 100 = 20% And so the retailer’s perimeter would be 20% when the system is sold at a 25% markup. ) To calculate the markup and selling price by a 25% margin: Value = Price / (1 ” Perimeter (%)) sama dengan $100 as well as (1 ” 25%) sama dengan $100 as well as (1 ” 0. 25) = $133. 33 Markup ($) sama dengan Selling Price ” Cost sama dengan $133. thirty-three , $22.99 = $33. 33 Markup (%) = Markup ($) / Price * 100 = $33. 33 as well as $100 * 100 = 33. 33% Therefore to acquire 25% margins, the product would have to be sold at $133. thirty-three with a markup of thirty-three. 33%. c) Reasons for maximize include: , Increase in fixed costs (rent, tax, commission rate, wages, etc . ) , Increase in demand and/or reduction in supply Various other competitors/retailers charge more for the product plus the higher perimeter is a result of raising sales value to match 6) The following is a Distribution Cycle for a Pair of designer Jeans: The manufacturer in China creates the Denims for $5. 00 a couple and sell those to the retailer for $7. 00. The importer sell them to the brand distributor to get $10. 00 a pair The Retail store will buy them to get $50. 00 from the manufacturer distributor. The Retail Store markups them up 150%. What is the Selling Price? Precisely what is the Perimeter % and Markup % for each of the Channel companions in the Division Chain? |Retail Price = $125. 0 | | | | | | | | | |Manufacturer | |Importer | |Distributor | |Retail | | | |Mark-up % | | | |40. 00% | |42. 86% | |400. 00% | |150. 0% | | | |Margin % | | | |28. 57% | |30. 00% | |80. 00% | |60. 00% | | | |Selling Price | |$ 5. 00 | |$ 7. 0 | |$ 12. 00 | |$ 40. 00 | |$ 125. 00 | | | |Channel Margin | | | |$ 2 . 00 | |$ 3. zero | |$ 40. 00 | |$ 75. 00 | | | |Channel Markup | | | |$ installment payments on your 00 | |$ several. 0 | |$ 40. 00 | |$ seventy five. 00 | | | | | | | | | | | | |