To calculate the Selling Price (SP):
\[ SP = CP \times \left(1 + \frac{M}{100}\right) \]
Where:
Markup refers to the difference between the selling price of a product and its cost price. It is often expressed as a percentage over the cost. This percentage is used to determine the selling price of an item to ensure a profit is made. Markup is a critical concept in retail and other industries where goods are sold for more than they cost to produce or purchase.
Let's assume the following values:
Using the formula:
\[ SP = 50 \times \left(1 + \frac{20}{100}\right) = 50 \times 1.20 = 60 \text{ dollars} \]
The Selling Price is $60.
Let's assume the following values:
Using the formula:
\[ SP = 100 \times \left(1 + \frac{15}{100}\right) = 100 \times 1.15 = 115 \text{ dollars} \]
The Selling Price is $115.
