markup percentage

Markup percentage is a way businesses determine how much to increase the cost of a product to set its selling price. It is calculated by dividing the amount added (profit and overhead) by the original cost and then multiplying by 100 to get a percentage. For example, if a product costs $50 to produce and the business adds a 40% markup, the selling price will be $70 ($50 + 40% of $50). Markup helps ensure the business covers costs and earns a profit while remaining competitive.