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Drew, The Markup percentage is the percentage of the selling price not represented in the cost of the goods. So if the markup is 20%, then 80% of the selling price is the cost. Your cost is $938, so the $938/80% = $1172.50 would be the cost for a product with a 20% markup. The contrasts with the gross Margin percentage, which is the percentage by which you increase the cost in order to find the selling price. If the margin were 20%, then you would calculate $938 * 120% = $1125.60 as the selling price. Thus the Margin is the view from the manufacturing side of things and the Markup is the view from the sales side of things. The Margin is always lower and you can relate the two using this equation, where U So for instance, if you knew you wanted a 20% margin, you could find So a margin of 20% is a markup of 25%. (Conversely, a markup of 20% is a margin of 16 2/3%.) Hope this helps,  


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