CIPS Level 4 Diploma in Procurement and Supply L4M5 Question # 113 Topic 12 Discussion
L4M5 Exam Topic 12 Question 113 Discussion:
Question #: 113
Topic #: 12
A supplier can produce a product for $160. The supplier sells the product to their client for $240, making a profit before tax of $80 on the transaction. What is the mark-up profit percentage earned by the supplier on this transaction?
The mark-up percentage is calculated as the profit divided by the cost of production, then multiplied by 100 to convert it into a percentage.
Calculation:
(
80
/
160
)
×
100
=
50
%
(80/160)×100=50%
Thus, the supplier’s mark-up percentage is 50%, as per standard pricing calculations used in procurement.
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