Scribd
Upload
356 views4 pages

Selling Price: Rate Work

Selling price, also known as market value or price, is the amount a buyer is willing to pay and a seller is willing to accept for a good or service. Price is a key part of commercial transactions and marketing strategy, and it is illegal to manipulate prices through collusion. There are various formulas for calculating price, including using a markup percentage added to the original cost of a product to determine the selling price. Markup is the difference between a product's cost and selling price, expressed as either a dollar amount or percentage, and is one way for businesses to generate profits.

Uploaded by

Lara Sinapilo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
356 views4 pages

Selling Price: Rate Work

Selling price, also known as market value or price, is the amount a buyer is willing to pay and a seller is willing to accept for a good or service. Price is a key part of commercial transactions and marketing strategy, and it is illegal to manipulate prices through collusion. There are various formulas for calculating price, including using a markup percentage added to the original cost of a product to determine the selling price. Markup is the difference between a product's cost and selling price, expressed as either a dollar amount or percentage, and is one way for businesses to generate profits.

Uploaded by

Lara Sinapilo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

SELLING PRICE

The market value, or agreed exchange value, that will purchase a definite quantity, weight, or other measure of a good or service. As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract (such as sale of goods contract), left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved. In commerce, it boils down to what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the competition is allowing to be charged. With product, promotion, and place of marketing mix, it is one of the business variables over which a company can exercise some degree of control. It is a criminal offense to manipulate prices (see price fixing) in collusion with other suppliers, and to give a misleading indication of price such as charging for items that are reasonably expected to be included in the advertised, list, or quoted price. Also called sale price and price
Read more: http://www.businessdictionary.com/definition/selling-price.html#ixzz1pYYxAa5L

Here is a selling price formula: S=C+rC. The selling price, S, is equal to the original cost, C, plus the markup rate, r, multiplied by the original cost. With this in mind, here's the actual question: A 20lb turkey has a 35% markup and is selling for $22.50. Use the selling price formula to find the original cost of the turkey (rounded to the nearest cent). Show all work. Submitted: 1583 days and 17 hours ago. Category: Homework Value: $15 Status: CLOSED

Use our retail markup/markdown calculator to determine the selling price of a product if you know the cost of the merchandise as well as the percent markup. Enter a positive percent to calculate markup or a negative percentage markdown to determine the retail price of an item on sale. For example, if your store is having a 35% Off clearance sale, enter -35%.

Markup $ = Retail Price - Cost Markup % = Markup Amount Retail Price

Definition: A percentage added to the cost to get the retail selling price. Also Known As: markon, markup Examples: A widget bought for $5 and sells for $10 has a mark-up of 100%. (Add $5 to the $5 cost to get the price.) A widget bought for $2, which sells for $3, has a mark-up of 50%, (Add $1 to the $2

cost to get the price

.)

Markup is the difference between the cost of a good or service and its selling price.[1] A markup is added on to the total cost incurred by the producer of a good or service in order to create a profit. The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product.[2] Markup can be expressed as a fixed amount or as a percentage of the total cost or selling price.[1] Retail markupis commonly calculated as the difference between wholesale price and retail price, as a percentage of wholesale. Other methods are also used. arkup as a fixed amount

Assume: Sale price = $2500, Product cost is $2000 Markup = Sale price - Cost $500 = $2500 - $2000 [edit]Markup as a percentage

Cost x (Markup + 1) = Sale price

or solved for Markup = (Sale price / Cost) - 1 or solved for Markup = (Sale price - Cost) / Cost

Assume the sale price is $1.99 and the cost is $1.40

Markup = ($1.99 / 1.40) - 1 = 42% or Markup = ($1.99 - $1.40) / $1.40 = 42%

To convert from markup to profit margin:

Sale price - Cost = Sale price x Profit margin therefor Profit Margin = (Sale price - Cost) / Sale price Margin = 1 - (1 / (Markup + 1)) or Margin= Markup/(Markup + 1) Margin = 1 - (1 / (1 + .42)) = 29.5% or Margin = ($1.99 - $1.40) / $1.99 = 29.6% [edit]Aggregate supply framework P = (1+) W. Where is the markup over costs. This is the pricng equation W = F(u,z) Pe . This is the wage setting relation. u is unemployment which negatively affects wages and z the catch all variable positively affects wages. Sub the wage setting into the price setting to get the aggregate supply curve. P = Pe(1+) F(u,z). This is the aggregate supply curve. Where the price is determined by expected price, unemployment and z the catch all variable.

You might also like