Maintained Markup (MMU) Maintained Markup (MMU) The Gross Profit generated on merchandise sold. The MMU reveals the impact of markdowns (reductions) on the IMU. Minimize COGS to increase MMU. MMU$ = (Original Retail - Reductions *) - COGS.
Considering this, what is IMU retail math?
Meaning. An initial markup unit is the amount of money, expressed as a percentage of initial cost, that a retailer adds to the price of goods. For example, a retailer that buys computers for $500 from the manufacturer and sells them to customers for $1,000 has an initial markup unit of 100 percent.
What is the average markup for retail?
Markup (business) Markup can be expressed as a fixed amount or as a percentage of the total cost or selling price. Retail markup is commonly calculated as the difference between wholesale price and retail price, as a percentage of wholesale. Other methods are also used.
What is the difference between initial markup and maintained markup?
The original markup is the difference between retailer cost and initial selling price. When products don't sell as quickly as anticipated, their price is reduced. The difference between the final selling price and the retailer cost is the maintained markup , which is often referred to as gross margin .