Chapter 4b - Pricing Calculation equations

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Last updated 4:15 PM on 5/30/26

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1

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What is the mark-up formula?

Profit ÷ Cost × 100

2

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What is the margin formula?

Profit ÷ Selling price × 100

3

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How do you calculate selling price from a mark-up?

Cost × (1 + mark-up%)

4

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How do you calculate cost from a margin?

Selling price × (1 − margin%)

5

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How do you calculate selling price under full cost-plus pricing?

Total cost × (1 + mark-up%)

6

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How do you calculate selling price under marginal cost-plus pricing?