We use these formulas in this unit, plus others: Markup =Cost Rate of markup on cost Cost = Markup / (Rate of markup on cost) Selling price =Cost(1+ Rate of markup on cost ) Cost = (Selling price) /((1+ Rate of markup on cost )) Rate of Markup on Cost = Markup / Cost What is your rate of markup on cost? Markup refers to the difference's between the products selling price and its actual cost. I am using the average markup percentage for mugs (75%) \& competitors selling price which is $10I can figure out how much the competitors unit cost: Markup percentage = service price unit cost / unit cost100 75%=(10-unit cost)/unit cost .75 unit cost=10-unit cost .75 unit cost+unit cost =10 1.75 unit cost =10 10 unit cost =10/1.75 Unit Cost $5.70 The manufacturing cost of mugs is $5.70 with a dollar markup of $4.3. Hopefully our reduce cost will bring more customers in