Your Performance
Below is a list of the cost and sales figures for the first four weeks of trading.
| Item | Cost | Sales per week |
|---|---|---|
| Maintenance | £5 per week | |
| Lab coats | £15 each | |
| Display boxes | £2 each | |
| Moneybox | £10 | |
| Delivery fees | £2 per day | |
Fruit:
|
|
|
You have decided to sell your fruit at the following prices:
- Apples: 20p each
- Oranges: 15p each
- Bananas: 15p each
- Grapes: 60p per bunch
- Strawberries: £1.20 per punnet
- Pears: 30p each.
Mark Up
Mark up is a term used to describe how much you add on to the cost of a product to get the selling price. This difference represents, in very simple terms, your 'profit'. For example, if you buy each apple from your uncle at 20p but sell it for 25p then you are making 5p 'profit' on each apple.
The mark up is found by dividing the 'profit' by the cost of production and multiplying by 100 to give a percentage. In the example given the mark up would be 5/20 x 100 = 25%.
It is important that you do not confuse the mark up with the profit margin (see later page).
Task 3
Use the information above to calculate the mark up for each piece of fruit you are selling. In each case, make sure that you write down the formula and show your workings - in many exams, this is a requirement and you get extra marks for showing how you arrived at your answers!