How do you figure the markup on cost method of pricing?

Answer by  idiotjones (705)

Markup on the cost method of pricing is figured by first determining the desired profit. This amount is added to the seller's cost to determine the price point. If the desired profit is 10%, and an item costs $100 to the seller, the seller will set the price at $110.

Answer by  ksforpedro (30)

To establish how much a product is marked up from the cost you must know both the price at sale and the original cost of the item. Take the price and divide the original cost. For example 100 divided 50 equals 2. The price was doubled.