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How does a business determine the markup on a product or service.
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How does a business determine the markup on a product or service.

User James Jackson
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Answer and Explanation:

Markup price refers to the amount that is obtained by subtracting the cost of the item from the selling price of the item. Normally the markup price is the amount sold to be added to the cost price with the objective of making a profit.

Computation of markup:

Markup = Selling price - Cost price

Computation of markup percentage:

Markup % =
[(Selling price - Cost price)/(Cost price)] * 100

User Minseong
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