Markup-on-Cost Pricing Method

Using this method, markup is reflected as a percentage by which initial price is set above product cost as reflected in this formula:

Markup Amount  =  Markup Percentage
    Item Cost

$15     =  30%
$50

The calculation for setting initial price is determined by simply multiplying the cost of each item by a predetermined percentage then adding the result to the cost:

Item Cost + (Item Cost x Markup Percentage) = Price

50 + (50 x .30 = $15)   =   $65

Cost Pricing: Markup Method
Markup-on-Selling-Price Pricing Method