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Aptitude Topics

Marked Price

Businesses usually increase the price of their items above the cost price. This creates a list price that allows them to offer discounts while protecting their profit margins.

Fundamental Principles

Marked Price (MP)

The public price printed on a product tag or catalog, also known as the list price or retail price.

Markup

The amount by which the cost price is increased to set the public selling tag (MP - CP).

Essential Formulation Tips

  • Markup percentage is calculated using the Cost Price as a base, while discount percentage is calculated using the Marked Price.
  • The core link between these values is: CP * (100 + Profit %) = MP * (100 - Discount %).

Shortcut Execution Techniques

  • Use the direct markup-to-discount ratio formula: MP / CP = (100 + Profit %) / (100 - Discount %). This helps you skip multi-step equations.

Contextual Inquiries (FAQs)

Q: What is the difference between markup and profit?

A: Markup is the price increase added before a sale, while profit is the actual financial gain earned after any discounts are taken off.