Markup and Markdown

Front

What is markup in pricing?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit. It is usually expressed as a percentage of the cost price.

Front

How do you calculate the retail price using markup?

Back

Retail Price = Cost Price + (Markup Percentage × Cost Price).

Front

If a product costs $100 and has a markup of 20%, what is the retail price?

Back

Retail Price = $100 + (0.20 × $100) = $120.

Front

What does a discount represent in pricing?

Back

A discount is a reduction in the usual selling price of a product, often expressed as a percentage.

Front

How do you calculate the usual price from a sale price and discount?

Back

Usual Price = Sale Price / (1 - Discount Percentage).

Front

If a shirt is on sale for $30 after a 25% discount, what was the original price?

Back

Original Price = $30 / (1 - 0.25) = $40.

Front

What is the formula to find the sale price after applying a discount?

Back

Sale Price = Original Price × (1 - Discount Percentage).

Front

How do you calculate the price before tax?

Back

Price Before Tax = Price After Tax / (1 + Tax Rate).

Front

If an item costs $50 after a 7% tax, what was the price before tax?

Back

Price Before Tax = $50 / (1 + 0.07) = $46.73.

Front

What is the difference between markup and margin?

Back

Markup is the percentage added to the cost price, while margin is the percentage of the selling price that is profit.