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assume markup percentage equals desired profit divided by total costs. what is the correct calculation to determine the dollar amount of the markup per unit?

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adioabiola

The correct calculation to determine the dollar amount of the markup per unit is "Total cost per unit times mark-up percentage per unit".

Mathematically, Mark up percentage is

  • Mark up percentage = desired profit ÷ total cost

The dollar amount of the mark-up per unit will be calculated by multiplying the total cost per unit with the markup percentage per unit

Mathematically,

  • Dollar amount of the mark-up per unit = Total cost per unit × mark up percentage per unit

Therefore, dollar amount of the markup per unit is determined by "Total cost per unit times mark-up percentage per unit".

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