Terms of payment

Mark up:
Mark-up is defined as the profit margin on a product offered for sale. It is a percentage of cost price of the product.
Two Basic Formulae:

Mark up Percentage= Selling price - Cost price  ×100
                                                       Cost price

Mark up Percentage= Gross Profit ×100
                                        Cost price     

Factors affecting percentage mark up
- Overall expenses and expected profits
- Quantity of goods that a retailer wants should be sold by his outlet
- Goods that have seasonal demand have mark up varying according to season
- Consumer durables have high mark up