03-20-2009, 11:57 PM
Markup belongs to cost and margin belongs to sales
Example if you buy something for Rs 10 and sell it for Rs 20, how much profit have you made?
Mark up = (profit/cost)*100 =(20-10)/10 = 100%
In this case the Mark Up on cost has been 100%.
And;
Margin = (profit/Sales)*100 =(20-10)/20 = 50%
But the Margin on sales has been 50%.