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Video Instructions
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Formula: Markup (%)= (Gross Profit/Cost of Sales)×100%Why It Matters: Markup refers to the percentage added to the cost price of a product to arrive at its selling price. It helps businesses determine the selling price of products to ensure a certain level of profit over the cost.
Formula: Gross Profit Margin (%)=(Gross Profit/Net Sales Revenue)×100%
Why It Matters: Gross profit margin indicates the percentage of revenue that exceeds the cost of sales.
It provides insight into how efficiently a company is managing its cost of goods relative to its sales.