Markup Equation is a term used to describe the pricing model of a business product. It’s basically an equation that calculates the cost of a product or service, by adding value to the original cost. The equation takes into account production costs, labor costs, marketing and promotion costs, material costs, and other associated expenses. Once all these factors are accounted for, a business can then add its desired markup percentage to determine their sale price. Markup Equation ensures businesses can generate adequate profits while still setting a competitive price point. So, make sure you understand your Markup Equation, it can be the difference between success and failure in business!