Mark Up Flashcards
1
Q
What is mark up
A
The different between the cost of a good and it’s selling price. A mark up is an added onto the total cost incurred by the producer or a good in order to make a profit.
2
Q
What does the total cost represent
A
The total cost represents the towel amount of both fixed and variable expenses to produce and distribute a product
3
Q
What is revenue
A
Profits + costs
4
Q
Cogs
A
Fixed + variable costs
5
Q
What is the forumla finding out the mark up percentage
A
SP-CP/CP * 100 = mark up
6
Q
What is forumla if the markup was given
A
Mark up (85 to 1.85) * CP
7
Q
What is the break even point formula
A
FC/SP - VC
8
Q
What is included in the revenue statement
A
Sales COGS (same as variable cost) Gross profit (sales - COGS) Fixed expenses Net profit (gross profit - fixed expenses)
9
Q
What is gross weight
A
Includes that packaging
10
Q
What is the net weight
A
Doesn’t include the packaging
