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Mark up
Mark up is defined as the rate of gross profit to cost of sales:Mark up = Gross Profit
Cost of salesMargin is defined as the rate of gross profit to sales:Margin = Gross profit Sales
Calculations of markup and margin are necessary to compute the profit loading on:
Examination questions may provide information on either the markup or the margin. If one is provided, it may be necessary to compute the other.Let us assume: X = Gross Profit Y = SalesTherefore: Margin = Gross Profit = X Sales YHowever: Sales – Costs = Gross ProfitOr: Costs = Sales – Gross Profit Which is stated as: Costs = Y – XAnd since: Mark up = Gross Profit CostsThis is stated as: Mark up = X Y – XIn summary, if: Margin = P/QThen the related Markup shall be P/(Q – P) Using similar arguments, it can be established tat if the Markup is give by P/Q,Then the related margin shall be P/(Q+P)
The current stock price of IOU is $250 and has a standard deviation of 35% per year. The risk-free interest rate is 5% per year compounded continuously. Find the prices of a call a
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Uncertainty A gift or disposition not expressive of any definite intention shall be void for uncertainty, i.e A gift under a will fails where there is uncertainty as to:
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Legal Aspects There is no law relating to branch accounts but examination problems under this heading are frequently linked to either partnership or company account problems. Ans
Grand Champion, Inc., purchased America's Sweethearts Corporation on January 1, 2013. At the time, America's Sweethearts had $750,000 of identifiable assets and $525,000 of liabili
How do I prepare a partial income statement under each inventory method?
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