Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 20 - No. 49)
If the mark-up is 50%, and cost of sales is $160,000, how do we arrive at the revenue?
Multiply cost of sales by 1.5
Divide cost of sales by 1.5
Multiple sales by 1.5
Divide sales by 1.5
Explanation
The markup is 50% on the cost of sales, meaning sales = cost of sales + markup amount. sales = cost + (50% * cost). Sales is 150% of the cost.
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