Please explain more about markup. Preferably with examples. I don't understand how to calculate the markup using price and margin.
Okay, here is an example: You can buy a widget for $15. You have no trouble selling it for $20. Your margin or gross profit is $5, which is the difference between the sales price and the purchase cost. Cost markup is $5/$15 = .33 or 33%. Sales price markup is $5/$20 = .25 or 25%. If you are still confused by this just use the Margin and Markup Calculator.