You see that to get the Markup we divide the Profit Margin Selling Price Unit Cost by the Cost Price. Markup Percentage Revenue Per Unit COGS Per Unit COGS Per Unit 100. From the formula of markup percentage we know.
The markup ratio is the percentage difference between the actual cost of goods sold COGS and selling price.
The markup ratio is the percentage difference between the actual cost of goods sold COGS and selling price. P R G The markup percentage M in decimal form is gross profit P divided by cost C. Then add that to the original unit cost to arrive at the sales price. The markup formula is as follows.