these two types of markup percentages have the same numerator (top number in the fraction). The numerator is markup, which is the difference between price and cost. The difference in the formulas is in the denominator. Markup based on cost has cost in the denominator and markup based on price has price in the denominator:
Markup % based on cost = (Price – Cost) / Cost
Markup % based on price = (Price – Cost) / Price
Please be careful in the math lab that you are calculating the correct percentage.
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