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Simple English definitions for legal terms
markon
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A quick definition of markon:
Markon: Markon is a percentage added to the cost of a product to determine its selling price. If the cost of a product is $10 and the markon is 20%, then the selling price would be $12. Further changes in price are called markups or markdowns.
A more thorough explanation:
Definition: Markon is a term used to describe the percentage added to a product's cost to determine its list price. Any further increase in price is called a markup, while a decrease is called a markdown.
- If a product costs $50 to produce and the markon is 25%, the list price would be $62.50 ($50 + 25% of $50).
- If a store wants to increase the price of a product by 10%, that would be considered a markup.
- If a product is on sale for 20% off its original price, that would be considered a markdown.
These examples illustrate how markon is used to determine the list price of a product. By adding a percentage to the cost of production, businesses can ensure they make a profit on each sale. Markups and markdowns are used to adjust the price based on market demand and other factors.