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foreign letamp;#39;s walk through how to calculate profit margin and markup in Excel and then apply this to setting the selling price based on cost and either margin or markup and Target costing based on selling price and margin or markup in each of the tabs of this margin and markup file in Excel the input variables are shown in yellow and the other numbers are calculated from those input variables letamp;#39;s start with inputting a selling price also known as the retail price 100 per unit cost or wholesale price is 80 dollars the gross profit in dollars equals the selling price minus the cost cell B6 minus cell B7 20 dollars now margin is the profit as a percentage of the selling price so B8 divided by cell B6 20 percent markup is the profit as a percentage of cost so B8 divided by cell B7 25 percent letamp;#39;s input various cost levels to see how these affect margin and markup if the cost is sixty dollars the margin is forty percent forty out of 100 and mark up sixty seven per