Does 100% profit mean a 100% markup or a 100% margin?

Home Bakery Business class-q-and-abakery-business

An editorially consolidated question from an undated class chat.

Does 100% profit mean a 100% markup or a 100% margin?

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1 reply

Those are different percentages. Markup compares profit with cost; margin compares profit with selling price. With a total cost of ₹100 and a price of ₹200, profit is ₹100: a 100% markup, but a 50% margin.

The course selling-price formula uses margin: price = total cost ÷ (1 − margin). A 100% margin would make the denominator zero, so it cannot give a finite selling price when cost is positive. Decide which percentage you mean before using a formula.

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