Please use the following format while giving an answer:
i) Define Mark-up?
ii) Explain Mark-up using example
iii) Real life Business Scenario where calculating the Mark-up can be useful?
iv) Mention the website where you find this information.
HINT: While giving explanation of any topic, we use features, advantages and disadvantages of the given term.
Mark up refers to the value that a player adds to the cost price of a product. The value added is called the mark-up. The mark-up added to the cost price usually equals retail price.
A markup is the difference between an investment’s lowest current offering price among broker-dealers and the price charged to the customer for said investment. Markups occur when brokers act as principals, buying and selling securities from their own accounts at their own risk rather than receiving a fee for facilitating a transaction. Most dealers are brokers, and vice versa, and so the term broker-dealer is common.
Markups also appear in retail settings, where retailers mark-up the selling price of merchandise by a certain amount or percentage in order to earn a profit.
Markup is a term used to define the difference between the cost of any good, service, or financial instrument and its current selling price. In other words, it is the result of subtracting selling price minus cost. Mark-up can also be defined as the gross margin of a sale, but the term is normally used in different contexts. A product markup is added by the retailer to obtain a profit from the transaction. This mark-up can also be expressed as a percentage of the sales price or as a percentage of the cost.