Recent Articles

Markup

Markup is the dollar amount or can be stated as markup % on the cost of an item. It is most commonly used when discussing inventory formulas. It frequently gets misused in discussing margin which is a function of sales.

Gross Profit Margin

01/02/2017

The difference between the sales price and the cost of the product or service rendered is known as gross profit margin in business.  It is traditionally the amount identified on the income statement or a tax return as the amount earned after cost [...]

Breakeven Analysis – Fundamentals

12/28/2016

Breakeven analysis is a managerial (cost) accounting tool used to examine the relationship of price to cost of a product.   It also considers various sales volumes and the effect on profit given the different relationships of price to cost.   [...]

Markup Percentage for Remodelers

05/20/2015

In the construction industry, remodelers face a different set of criteria than your traditional new home builder.  Because of these issues the markup percentage on costs is generally much higher than other forms of construction.  If you are a [...]

What is ‘Cost of Goods Sold’?

12/20/2012

Simply put, ‘cost of goods sold’ equals the direct costs of materials, human resources, and equipment needed to produce the item sold.  However, this can be confusing because there are many marginal cost items that affect the real cost of [...]

What is the Difference between Markup and Margin?

12/08/2012

Mark Up Calculator It is amazing how one simple formula can be so confusing to the average business owner.  The formula is markup.  It is defined as the dollar amount or percentage of the cost of the item added to the item to equal its sales [...]