Markup
Amount added to cost to determine selling price.
Formula
Selling Price = Cost + (Cost × Markup %)
Real World
A bakery buying ingredients for £1.00 per loaf and applying a 150% markup sells each loaf for £2.50 — a common cost-plus pricing strategy used by small retailers.
Exam Focus
Don't confuse markup (on cost) with margin (on selling price); examiners regularly test this distinction in calculation questions.
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