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oh the National Sales Manager of your organization comes to you and tells you we have launched three new products a t-shirt jacket and shoes and he asked you mr. accountant or miss financial analyst we are targeting a margin of 15% would you be able to tell what price we should be sending these four exact donum yeah sure give me five minutes and Ill send you the prices so you already have the cost of these products you know that the t-shirt costs about $15 the jacket 120 and the shoes cost about $95 now we know that the sales manager asked you to put a 15-person margin but youre not sure exactly how this is done make sure you subscribe to my channel learn accounting and finance you know the cost of the products you know that the target margin is 15% how do you calculate the selling price let me simply your cost times 1 plus your target margin no remember the sales manager told you the target margin is 15% what you have just done now is added a markup of 15% so what is the difference