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sergey [27]
3 years ago
12

Explain standard ratio markup pricing

Arts
1 answer:
Klio2033 [76]3 years ago
7 0
Markup<span> is the ratio between the </span>cost<span> of a </span>good<span> or </span>service<span> and its selling price. It is expressed as a percentage over the cost. A markup is added onto the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a </span>profit<span>. The total cost reflects the total amount of both </span>fixed<span> and </span>variable expenses<span> to produce and distribute a </span>product. <span>Markup can be expressed as a fixed amount or as a percentage of the total cost or selling price.</span> Retail markup<span> is commonly calculated as the difference between </span>wholesale<span> price and retail price, as a percentage of wholesale. Other methods are also used.</span>
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