Chapter 2

Markup and margin

The same profit, measured two ways

An explorable chapter on contractor pricing: markup on cost, margin on price, converting between them, and building a bid with overhead and profit.

1. 2.1
   Markup on costPrice = cost × (1 + markup)
2. 2.2
   Margin on pricePrice = cost ÷ (1 − margin)
3. 2.3
   Building a bidDirect costs, overhead, then profit

1 slider tasks · 2 practice sets · 8 questions