Accounting 2 - Mark-up (5.4)

Question 1

What is a mark-up?

Answer 1

Determining selling prices by adding to the cost price a predetermined profit margin

Question 2

What is the formula for applying a percentage mark up?

Answer 2

Selling Price = Cost price * (1 + mark-up(as percent)/100)
Example:
Mark up price = $30 * (1 + 50/100) = $45.