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FINANCE / INTERMEDIATE / INSTRUCTOR
Outcome: Use the correct pricing denominator.
Review edition: This curriculum is open for inspection. It is not yet available for purchase, credentialing, or unsupervised instruction. Clarify gross margin versus contribution margin.
Markup is profit divided by cost, while margin is profit divided by selling price.
Ask the learner to restate the principle using their own example.
A 100% markup on $10 cost creates a $20 price and 50% gross margin.
Work one case together and narrate the decision at each step.
Add discounts, fees, and expected returns before trusting a margin.
Give the learner a new case; observe the process before offering a correction.
Recalculate when costs or wholesale terms change.
Request an independent explanation and ask which assumptions might change the result.
Price an item costing $3.20 to achieve a 60% gross margin.
Show $3.20 divided by (1 minus 0.60) equals $8.00 before other variable costs.
Accept a written, spoken, or accessible equivalent response when it demonstrates the same skill. Mark each criterion met, developing, or missing; never mark attendance alone as competency.
Primary source to review: Official topic guidance ↗
Content review: Clarify gross margin versus contribution margin.
