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Basics of Retail Math,

always 100%. Therefore, both cost (the amount you pay for an item) and markup (the amount by which you increase the price to cover your expenses and profit) must equal 100%. For instance, if you paid $0.55 for a spatula and sold it for $1.00, your gross profit margin would be $0.45 (45%) and your cost of goods would be $0.55 (55%).