Relationship Of Markup To Profit

Front 1

Initial Markup or IMU% can be found by this formula when the Gross Margin % and Retail Reduction % are Known

Back 1

Gross margin % + Retail Reductions %
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100% (sales) + Retail Reductions

Front 2

Initial Markup of IMU% can be found by this formula when the Gross Margin in $$$ and the Retail Reductions in $$$ are known

Back 2

$ Gross margin + $ Retail Reductions
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$ Sales + $ Retail Reductions

Front 3

Cumulative Markup Percentage %% can be found with this formula

Back 3

Cumulative markup % = Cumulative markup dollars
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Cumulative retail dollars

Front 4

When it comes to Maintained Markup:
You can calculate the Gross Margin % when you know the Net Sales and the Total COGS.

Back 4

GM% = Net sales – Total cost of goods sold
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Net Sales

Front 5

When it comes to Maintained Markup:
You can calculate the Maintained Markup % when you know Net Sales and the Gross COGS.

Back 5

Net sales – Gross cost of goods sold
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Net Sales

Front 6

When it comes to Maintained Markup:
You can calculate the Gross Margin % when you have the MMU $, + Cash Discounts and - Alteration Costs, and Net Sales.

Back 6

GM% = MMU + Cash Discounts – Alteration costs
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Net Sales

Front 7

When it comes to Maintained Markup:
You can calculate the MMU % when you have the Gross Margin $ $, - Cash Discounts and + Alteration Costs, and Net Sales.

Back 7

MMU% = Gross margin – Cash Discounts + Alteration costs
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Net Sales

Front 8

When it comes to Maintained Markup:
You can calculate the MMU% this way when you are given the Inital Markup and Retail Reductions are given

Back 8

MMU% = Initial MU% - [Retail reduction % X (100% - Initial MU%)]

Front 9

When it comes to Maintained Markup:
You can calculate the Retail Reductions % this way when you are given the Inital Markup , Sales (or 100%) and Maintained Markup

Back 9

Reduction % = Initial Markup % - MMU %
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Sales (100%) – Initial Markup %

Front 10

Retail =

Back 10

Cost / (100% - MU)

Front 11

Cost =

Back 11

Retail x (100 - MU%)

Front 12

Markup =

Back 12

Retail $$$ - Cost $$$
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Retail $$$

Front 13

Retail Reductions =

Back 13

Markdowns + Employee Discounts + Shortages

Front 14

Profits =

Back 14

Cash Discounts