Скачать или смотреть Exercise 4.4 Q.No.1 Mathematics of Sindh Text Book Board (STBB) Unit-4 Profit/Markup





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The formula in the request, 

PRT=I, represents the calculation for simple interest, not profit markup. 

P = Principal amount (the initial sum of money)

R = Annual interest rate (as a decimal)

T = Time period (in years)

I = Interest amount 

Profit Markup

Profit markup is the amount added to a product's cost to determine its selling price. The markup is the gross profit expressed as a percentage of the cost price. 

The formulas for calculating markup are:

Markup Amount = Selling Price – Cost Price

Markup Percentage = ((Selling Price – Cost Price) / Cost Price) × 100 

For example, if a product costs $80 and sells for $100:

Markup Amount = $100 - $80 = $20

Markup Percentage = ($20 / $80) × 100 = 25% 

Key Distinction: Markup vs. Profit Margin

It's important not to confuse markup with profit margin, as they use different bases for calculation: 

Markup is based on the cost price.

Profit Margin is based on the selling price (revenue). 

The formula for profit margin is:

Profit Margin Percentage = ((Selling Price – Cost Price) / Selling Price) × 100 

Using the same example ($80 cost, $100 selling price):

Profit Margin Percentage = ($20 / $100) × 100 = 20%