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Q: What is the definition of Mark-up Equivalent in your Expected Results? How did you arrive at 61.3% in the current year?
A: Mark Up is the percentage variable costs are increased (marked up) to determine the selling price (or revenue). In the Forecast example Revenue is 500,000 Variable costs are 310,000 310,000 * 1.613 = 500,000 ie Revenue is based on variable costs increased by 61.3%. Formula are outlined at https://bizpep.com/businessanalysis.html This is the web based Forecast and Valuation model which applies the same basic methodology as the Excel version.
Question and Answer Item 11014 - Browse All Question and Answer Items