Calculate margin

Hi,

I have an item which I need to provoide a margin of 40%. Could someone confirm my way of thinking.

Mark-up

An item cost us £1.00 which represents 100% so to mark up 40% would be £1.40 (£1.00 x 1.40)

Margin

An item cost £1.00 & we require a margin of 40%. The £1 represent 60% so obtain the value of the margin would be 40/60 x £1.00 there the margin value is £0.66 & the total seeling price is £1.66.

Is this correct?

Thanks

Quote:

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Originally Posted by MondeoST24

Hi,

I have an item which I need to provoide a margin of 40%. Could someone confirm my way of thinking.

Mark-up

An item cost us £1.00 which represents 100% so to mark up 40% would be £1.40 (£1.00 x 1.40)

Margin

An item cost £1.00 & we require a margin of 40%. The £1 represent 60% so obtain the value of the margin would be 40/60 x £1.00 there the margin value is £0.66 & the total seeling price is £1.66.

Is this correct?

Thanks

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Yes, but you could round up 40/60 to 0.67 which is closer to the actual value.