Mark-Up
Mark-up is the amount added to the cost price of a product to determine its selling price.
Equation:
𝑃𝑆 = 𝑃𝐶 + 𝑀𝑈
Where:
𝑃𝑆 – The selling price of the product
𝑃𝐶 – The cost price of the product
𝑀𝑈 – The mark-up value [price]
Also:
𝑀𝑈 = 𝑃𝐶 × 𝑀𝑈𝑅𝐶 ; 𝑀𝑈 = 𝑃𝑆 × 𝑀𝑈𝑅𝑆
Where:
𝑀𝑈𝑅𝐶 – Percent mark-up based on the cost price
𝑀𝑈𝑅𝑆 – Percent mark-up based on the selling price
Converting percentage mark-up based on the selling price to cost price and vice versa.
Rule:
i. If the mark up is based on the cost price converting to the equivalent mark up on
the selling price, let 𝑃𝑐 be at 100%, then:
𝑀𝑈𝑅𝐶
𝑀𝑈𝑅𝑆 = × 100%
100 + 𝑀𝑈𝑅𝐶
ii. If the mark up is based on the selling price converting to the equivalent mark up on
the cost price, let 𝑃𝑠 be at 100%, then:
𝑀𝑈𝑅𝑆
𝑀𝑈𝑅𝐶 = × 100%
100 − 𝑀𝑈𝑅𝑆
Example:
i. A shirt costs Php 300. If the mark-up percentage is 25%, what is the selling price?
ii. A store wants to make a Php 150 profit on a sofa with a cost price of Php 9000. What
should be the mark-up percentage?
iii. An electronic gadget is sold for $200 with a 20% mark-up. Calculate the cost price
and the mark-up value.
iv. A jewelry item has a selling price of Php 18 000 with a 40% mark-up. Calculate the
cost price and the mark-up value.
v. A bookstore marks up its books by 30% based on the cost price. If a book costs Php
450, what is its selling price?
vi. A kitchen appliance is marked up by 25% based on its cost price. If the selling price
is $120, what is the mark-up percentage based on the selling price?
vii. A bookstore marks its books up by 5% based on the selling price. If a book costs $10,
what is the mark-up percentage based on the cost price?
viii. A tech gadget has a selling price of Php 7500 with a 30% mark-up based on the cost
price. What is the mark-up percentage based on the selling price?
ix. A store applies a 12% mark-up based on the cost price for a clothing item. If the
selling price is Php 350, what is the mark-up percentage based on the selling price?
x. A pair of shoes is sold for Php 700 with an 8% mark-up based on the selling price. What
is the mark-up percentage based on the cost price?
Practice Exercises:
1. You buy a shirt for $25 and want to apply a 40% markup based on the cost price.
What will be the selling price?
2. A tech gadget costs you $60. If you want a $15 markup based on the cost price,
what should the selling price be?
3. You purchase a pair of shoes for $80 and want to mark them up by 25% based on
the cost price. Calculate the selling price.
4. An antique book costs $50. If you desire a $20 markup based on the cost price, what
will be the selling price?
5. You buy a set of kitchen appliances for $150 and aim for a 30% markup based on
the cost price. Determine the selling price.
6. A local store sells a sofa for $450 with a 15% markup based on the selling price. What
is the markup percentage based on the cost price?
7. You purchase a painting for $200 and want a 20% markup based on the cost price.
Calculate the selling price.
8. A boutique marks up a dress by 40% based on the selling price, selling it for $140.
Determine the markup percentage based on the cost price.
9. You buy a smartphone for $300 and mark it up by 25% based on the cost price.
Calculate the selling price.
10. A watch costs you $75, and you want to apply a 50% markup based on the cost
price. What is the selling price?
