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Annual gross mark-up

OnlineGo
New answer on Aug 31, 2021
1 Answer
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Anonymous A asked on Aug 30, 2021

Hi there,

Isn't the answer for the second part of Q1 different as the question asked for gross mark-up instead of profit margin? The answer given is annual profit margin of 28.6% and was wondering if I missed something.

If it is indeed different, may I know what would your answer be? Thanks! :)

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Best answer
Ian
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replied on Aug 31, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

I think you're right here!

They ask for markup but then provide margin…two different (but easily confused concepts)

Margin is (sales minus the cost) divided by sales.

Markup is (sales minus the cost) divided by cost.

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Ian

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