







Markup 
20140317 

From Lorriane: I work for a plumbing company and our new financial manager said we should mark up all parts we buy by 142.86 to get a 30% mark up, however if we buy something for $100.00 we charge $130.00 being 30%.
If we use the other method the customers will be paying $142.86 for $100.00 and they still say that this is only 30% mark up.
We have for years been taught percentages at school and also the Government charges us 15% GST which on $100.00 would be $15.00 so who is correct.
Thank you for your wonderful website
Lorriane Answered by Chris Fisher and Penny Nom. 





Profit margin 
20130506 

From Arron: I have the retail price of $45.50. This price reflects a gross profit margin of 47%. How do I calculate the original cost of the item? Answered by Penny Nom. 





Percent profit: State exam question 
20130312 

From tony: which is the correct way to figure 30% profit?
1)
1000 product
500 labor
50 permit
1550 total cost
1550x1.3=2015
2)
1000 product
500 labor
50 permit
1550 total cost
1.3=.7
1550/.7=2214 Answered by Harley Weston. 





state exam question 
20130312 

From tony: which is the correct way to figure 30% profit?
1)
1000 product
500 labor
50 permit
1550 total cost
1550x1.3=2015
2)
1000 product
500 labor
50 permit
1550 total cost
1.3=.7
1550/.7=2214 Answered by Harley Weston. 





40% margin 
20110307 

From Blake: An item costs a store owner $1.79 and he wants to make a 40% margin on the item. What should the item be sold at in order to get the 40% margin? Answered by Penny Nom. 





Profit as a percentage 
20110117 

From Connie: I am trying to determine the profit margin on selected items.
ex: A bottle of juice costs me $.70, I sell it at $3.75. How can I determine what my profit percentage is? Answered by Penny Nom. 





I want to make a 50% profit 
20101029 

From Debbie: If my cost on an item is $32.00 and I want to make a 50% profit What would the retail be? Answered by Penny Nom. 





A 30% markup 
20090902 

From Lisa: Ok i want to mark a products up 30%, I would take 5.00X3o%,but my boss does it another way I have yet to figure out he takes cost divided by 70% or something like that I am so lost can you help? PLEASE Answered by Victoria West and Penny Nom. 





Markup and margin 
20090720 

From Deanna: What is the difference between a margin percent and a point margin? For instance. A coworker sells product. If the wholesale cost of said product is $.20, she multiplies that by 1.7 to get her selling price of $.34. To me, that is a 70% margin on the product (our company is making 70% on top of the purchased price). She considers it a 30 point margin, but to me it is 70%. Does that make sense? Any help? What is the difference between a point margin and a percentage? Answered by Harley Weston. 





Profit margin 
20090526 

From andreya: what is the profit margin of a business that spends $200 in order to make $1000 Answered by Penny Nom. 





A markup of 30% 
20081206 

From Tammy: How can a markup of 30% be calculated by using 1.43 times the original cost? Where does the 1.43 come from? For example: the original cost is 830.00 the markup is 30 %. The selling cost is 1186.90. My boss uses 1.43 to figure the mark up for 30% and 1.23 for 25% and 1.1 for 10%. What I want to know is how do they come up with these figures? Answered by Stephen La Rocque. 





Selling price 
20080510 

From Roxane: I'm trying to figure out the formula for the following, I have a product that
I want to receive a certain profit margin, but with this product I also have
to pay a percentage of commission to someone. I need to know how to
calculate my new selling price taking into account the markup percentage, but
I don't want my gross margin to be lowered. I have calculated the markup
percentage to get my new selling price with the commission, but it lowers
my profit margin once I pay the commission and I don't want it to do that. Answered by Penny Nom. 





Markup 
20080502 

From Sussie: I sold an item for $75.00
It cost me $17.00
How do I calculate to come up with the Markup %? Answered by Penny Nom. 





Profit percentage (markup and margin) 
20071218 

From Laura: If my husband says he sold $11,000 worth of tools and made $1400 on the deal, what is the percent of profit? Answered by Stephen La Rocque. 





Confidence level 
20071119 

From Fara: It is common for public opinion polls to have a " confidence level" of 95%, meaning
that there is a 0.95 probability that the poll results are accurate within the claimed margins of error.
If six different organizations conduct independent polls, what is the probability that all
six of them are accurate within the claimed margins of error? Does the results suggest that
with a confidence level of 95%, we can expect that almost all polls will be within the claimed
margin of error? Answered by Harley Weston. 





Our company charges a 4% margin 
20071113 

From Nadja: Our company charges a 4% margin on top of a pay rate to obtain the total charge rate. A
client is denying that the total charge rate is calculated in the following
way:
Pay rate/0.96 = Charge rate
Please could you provide me with an explanation which I can pass on as
to why it is calculated in this way? Answered by Penny Nom. 





Maximizing profits II 
20071005 

From a student: Suppose there are three firms with the same demand function. The function is Q=100040P. Each firm also a a cost function.
Firm 1: 4000+5Q,
Firm 2: 3000+5Q,
Firm 3: 3000+7Q.
What price should each firm charge if it wants to maximize profits. Answered by Harley Weston. 





Find the sample size needed 
20070513 

From Mini: Find the sample size needed to be 98% confident thata marketing survey on the proportion of shoppers who use the internet for holiday shopping is accurate within a margin of error of 0.02. Assume that the conditions for a binomial distribution are met, and that a current estimate for a sample proportion does not exist. Answered by Penny Nom. 





How to calculate margin of profit???? 
20070203 

From A student: If cost price is Rs. 100/ and our selling price is 139/. I want to know the gross profit & how much margin in this???? Answered by Penny Nom. 





A margin of 19% 
20070201 

From Ed: I PAY $10.95 FOR THIS PRODUCT, HOW SHOULD I PRICE IT IN ORDER TO HAVE A MARGIN OF 19% COST. Answered by Penny Nom. 





Profit margin 
20061122 

From Kris: I just started a new sales position and need to calculate profit margins based on my cost of a given product. For example I have a piece of equipment that costs me $102,077.73. I need to figure a profit margin of 18% from cost to arrive at my sale price. What is the best way to do this? Answered by Penny Nom. 





Profit margin 
20061104 

From Beverly: Our costs to make a product is $73.00. We want to sell this product and make a 30 percent profit margin. What is the selling price? What is the simple formula to follow? Is there a chart we can go to that shows us these percentage of profit breakdowns Answered by Penny Nom. 





Selling Price using Profit Margin 
20061029 

From Chris: What is the selling price of my inventory, find using the profit margin? Inventory A costs $2,300. The profit margin is 55% Inventory B cost is $4,500. The profit margin is 210%. Answered by Penny Nom. 





Can you explain the differences between margin and mark up? 
20060607 

From Michelle:
I have a widget I buy for $10. I want to make a 40% margin on the product cost. What do I then sell to the customer for?
Also, can you explain the differences between margin and mark up?
Answered by Penny Nom. 





Markup, profit and margin 
20031124 

From Ali: I have question regarding Margins, Markups and Profit
Purchase price = $ 10.00
Margin or Markup ?? = 40 %
Therefore Selling Price = 10/0.6 = $ 16.67
Profit ? = (16.6710)/10 *100 = 66.67%
or is the profit = (16.6710)/16.67*100 = 40 %
Can you please clarify What is Margin, Markup and Profit Answered by Penny Nom. 





Profit margin 
20030903 

From Chet:
My salesman calculates a customers profit margin by dividing what the customer paid by what he sells for, then subtracting that answer from 1. For example a customer sells a product for $15. He bought it for $10. 15/10=.66 Subtract that from 1 and get a profit % of 33% Here's my question: If I want to figure what a reseller will sell a product for if he wants 40% margin(by the technique above), what formula do I use? Let's say I want to sell a product for 8.50, and I want the reseller to make 40% Answered by Penny Nom. 





Margin of error 
20010713 

From Jim: If a survey was completed by four different groups of people as indicated below what would the overall margin of error be for this survey given the fact that the number of people in each group were different?
Group # polled Margin of error
A. 779 +/ 4%
B. 315 +/ 7%
C. 323 +/ 6%
D. 254 +/ 9%
Answered by Andrei Volodin. 





Marginal Propensity to Consume 
20010509 

From Esther: The derivative of the national consumption function C = f(y) is called the ____________________. Answered by Judi McDonald. 

