A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.
Calculating markup percentage helps a trader get most out of the pricing method.
Formula to calculate markup percentage.
Example:
A carpenter bought a second hand chair at $ 30, after repairing it, he sold it at $ 50. Calculate the markup percentage.
Therefore, the markup percentage is 66.67%.
