Mark-Up

Mark-up is difference in retail price and the cost price, that is
R = C + M
Where R = retail price
C = cost price
M = mark-up

For example :

The price of an antique table is RM5000. What is the retail price if the seller wants a 20% mark-up based on

( a ) cost price
( b ) retail price

Solution :

( a ) Let the retail price be RM x. Then
R = C + M
RM5000 0.2(RM5000)
Retail price = 5000 + 0.2(5000) = RM 6000
The retail price is RM6000.

( b ) Let the retail price be x. Then
R = C + M
X = 5000 + 0.2x
0..8x= 5000
X = 5000/0.8
X = RM 6250