Exercise 4.4 Q.No.5 Mathematics of Sindh Text Book Board (STBB) Unit-4 Profit/Markup скачать в хорошем качестве

Exercise 4.4 Q.No.5 Mathematics of Sindh Text Book Board (STBB) Unit-4 Profit/Markup

  +16 The formula in the request,  PRT=I, represents the calculation for simple interest, not profit markup.  P = Principal amount (the initial sum of money) R = Annual interest rate (as a decimal) T = Time period (in years) I = Interest amount  Profit Markup Profit markup is the amount added to a product's cost to determine its selling price. The markup is the gross profit expressed as a percentage of the cost price.  The formulas for calculating markup are: Markup Amount = Selling Price – Cost Price Markup Percentage = ((Selling Price – Cost Price) / Cost Price) × 100  For example, if a product costs $80 and sells for $100: Markup Amount = $100 - $80 = $20 Markup Percentage = ($20 / $80) × 100 = 25%  Key Distinction: Markup vs. Profit Margin It's important not to confuse markup with profit margin, as they use different bases for calculation:  Markup is based on the cost price. Profit Margin is based on the selling price (revenue).  The formula for profit margin is: Profit Margin Percentage = ((Selling Price – Cost Price) / Selling Price) × 100  Using the same example ($80 cost, $100 selling price): Profit Margin Percentage = ($20 / $100) × 100 = 20%