Pricing Perishables
Posted by Professor Cram in Markup and Markdown
Pricing Perishables
Use this Formula Solver! Series program to learn how to calculate price for perishables to cover spoilage losses. Use your own numbers and solve for either old price, new price, or spoilage rate. It’s great for checking your homework answers, too!
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This is sooooooooooo wrong…..according to the calculator an item that sells for $10.00 that has been marked up 40% would have a cost of $6.00…… $6.00 + 40% =$8.40!!!
There are many ways to calculate markup. There is a separate calculator for “markup from price” and for “markup from cost.” Your calculations are correct for “markup from cost” but the example you cite as wrong is from “markup from price.”
You see, “markup from price” addresses how much of the sale price is markup. In your case, 40% markup from price means 40% of the price is markup. As mentioned in the markup from price cramlet, businesses use markup from price so that they can have a consistent rate of profit across multiple products/services – in this case, 40%.
thanks !! it helps me a lot !!