markup verses gross profit margin

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   Gross profit refers to the % of the Selling Price that is your profit
E.G. Sell $5.00 Cost $2.50  50% of the selling price is Profit so GP% = 50%
Mark up refers to the % of the cost price which has been used to calculate the selling price
E.G. Sell $5.00 Cost $2.50  The cost has been Marked up by 100% to obtain the selling price.  
**  Here is a link to a very informative doc on profit margins. In general retailers refer to Markup and wholesalers, importers, manufacturers refer to Gross profit margin. http://en.wikipedia.org/wiki/Gross_marginThe formula to convert a markup to gross margin is:
The formula to convert a gross margin to markup is:

Edited by peach - 30-Jan-2014 at 15:48

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peach Members Profile Find Members Posts Admin Group THE BOSS Joined: 01-Jan-2006 Status: Offline Points: 1295	Post Options Post Reply Quote peach Report Post Thanks(0) Quote Reply Topic: markup verses gross profit margin Posted: 01-Mar-2011 at 01:17
	Gross profit refers to the % of the Selling Price that is your profit E.G. Sell $5.00 Cost $2.50 50% of the selling price is Profit so GP% = 50% Mark up refers to the % of the cost price which has been used to calculate the selling price E.G. Sell $5.00 Cost $2.50 The cost has been Marked up by 100% to obtain the selling price. Here is a link to a very informative doc on profit margins. In general retailers refer to Markup and wholesalers, importers, manufacturers refer to Gross profit margin. http://en.wikipedia.org/wiki/Gross_margin The formula to convert a markup to gross margin is: $\text%7bGross%20margin%7d%20=%20\frac%7b\text%7bmarkup%7d%7d%7b%281%20+%20\text%7bmarkup%7d%29%7d$ The formula to convert a gross margin to markup is: $\text%7bMarkup%7d%20=%20\frac%7b\text%7bgross%20margin%7d%7d%7b%281%20-%20\text%7bgross%20margin%7d%29%7d$** Edited by peach - 30-Jan-2014 at 15:48