Upgrade to remove ads
MKTG 3101: Calculating Margins
Terms in this set (7)
A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. (Manufacturer-Distributor-Wholesaler-Retailer-Customer)
=Cost to Produce + Margin
Margin % (Easy...)
=(Selling Price-Cost)/Selling Price
Usually in smaller retailers, they use this instead of margin. Expressed in Currency it is the same as Margin, but in % and Decimals it's different.
= (Selling Price-Cost)/Cost
Key Formula: Selling Price should =
Cost / (1-Margin%). So we chain it. Manufacturing Cost gets the Manufacturing Price, which is then used to calculate Distribution Price, etc. **Helps us go from Manufacturing cost to Retail Selling Price.
How to chain from Retail Selling Price to Manufacturer Cost:
Use cost = selling price * (1-Margin%). Start with Retail Selling price, find cost to Retailer. That Cost to Retailer is now the Wholesale Selling Price, etc.
THIS SET IS OFTEN IN FOLDERS WITH...
MKTG 3101 Part 1 (5/13)
MKTG 3101 Part 2 (5/14)
MKTG 3101: Profit Dynamics
MKTG 3101 Part 3 (5/15)
YOU MIGHT ALSO LIKE...
Graduate Level Managerial Accounting Ch. 1
ACC 4308 Chapter 3
Cost Concepts, Terms and Classifications
OTHER SETS BY THIS CREATOR
Audit Final: Chapter 20
Audit Final: Chapter 19
Audit Final: Chapter 7
Audit Final: Chapter 6