Lesson 6 Mark Up and Margin.pptx

2. LESSON 6:
Difference
between
Mark Up and
Margin

3. Mark on, Mark down, and Mark Up on a
Given Price of Product
Learning Targets: At the end of the lesson, I can..
1. differentiate mark-up from margins
(ABM_BM11BS-Ih-3): and
2. describe how gross margins is used in
sales.

6. Rai Company sells bikes and other related
parts and accessories. A particular
mountain bike has an average cost of
P6,000. Rai adds 20% mark-up for
overheads. Due to the current situation in
the Philippines (COVID-19 Outbreak), he
increases the price up to 50% of the selling
price. How much is the selling price before
and during the outbreak? How much is the
mark-on?

9. Every trader wants to compute the rate of
his/her gross profit. There are two
ways to get it: we can either base it on the
cost of goods sold or on the revenue. The
rate of gross profit based on cost of goods
sold is called mark-up while the rate of
gross profit based on revenue is called
margin or gross margin.