Markup
Amount added to cost to determine selling price.
Formula
Selling Price = Cost + (Cost × Markup %)
Real World
Primark buys a t-shirt for £3 and applies a 200% markup, selling it for £9 — keeping prices low while still covering costs and generating profit.
Exam Focus
Show full working in calculations; markup is on cost, not selling price — confusing the two is a common error.
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