A question about business

[shwantzme]

I work for a British company that manufactures special effects lighting for nightclubs, concert venues....etc. Since the dollar has been taking a pounding lately, I have had to mark up my list prices by 10%. The way we do this is by taking the list price and dividing by .9.

Example:

$1000/.9 = $1111.12

Obviously 111.12 is not 10% of 1000, but this is how I have been told to do it by the VP. This is also how I marked up product form the COG when I was selling copiers as well because that is what my manager told me to do. Before i was told to use that formula I would have simply multiplied something by 1.1 in order to mark it up 10%.

My question to any of you who have business background is:

Am I actually marking something up 10%?

Don't tell me how stupid you think I am.

[Dammit!]

I work for a British company that manufactures special effects lighting for nightclubs, concert venues....etc. Since the dollar has been taking a pounding lately, I have had to mark up my list prices by 10%. The way we do this is by taking the list price and dividing by .9.

Example:

$1000/.9 = $1111.12

Obviously 111.12 is not 10% of 1000, but this is how I have been told to do it by the VP. This is also how I marked up product form the COG when I was selling copiers as well because that is what my manager told me to do. Before i was told to use that formula I would have simply multiplied something by 1.1 in order to mark it up 10%.

My question to any of you who have business background is:

Am I actually marking something up 10%?

Don't tell me how stupid you think I am.

I have no business background. And actually am not very good at math.

But I can tell you for sure, you are not marking the price up 10%.

But that would be the correct way to adjust for dollar-value loss. Just, don't call it mark-up. There should be another word for it, like "currency correction" or something.

BTW, don't listen to me. I have no clue.