How do you calculate mark-up on total variable costs?

To calculate mark-up on total variable costs, first determine the total variable costs associated with producing a product. Next, decide on the desired mark-up percentage. Multiply the total variable costs by the mark-up percentage to find the dollar amount of the mark-up, then add this amount to the total variable costs to arrive at the selling price. For example, if total variable costs are $100 and the desired mark-up is 25%, the selling price would be $100 + ($100 x 0.25) = $125.