1. ## Mark up

I have a product costing £4500 which has already had a 60% mark up applied to it. What is the calculation required to find the original price before the mark up was applied?

Thanks!

2. Originally Posted by banyard2000
I have a product costing £4500 which has already had a 60% mark up applied to it. What is the calculation required to find the original price before the mark up was applied?

Thanks!
(4500 / 160) * 100 = 2812,50

3. Thanks very much.

Is this caluclation different if i am calculated the cost when I am given the profit margin as a % instead of mark-up?

4. Originally Posted by banyard2000
Thanks very much.

Is this caluclation different if i am calculated the cost when I am given the profit margin as a % instead of mark-up?

Well always treat the original price as 100%

So if it went 60% up, the new price is 160%

Then use the method of cross multiplication to solve:

$\frac{x}{4500} = \frac{100}{160}$