Markups & Markdowns Practice

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What is a markup?

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A markup is the amount added to the cost price of a product to determine its selling price, usually expressed as a percentage of the cost price.

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How do you calculate the amount of a markup?

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To calculate the amount of a markup, multiply the cost price by the markup percentage (expressed as a decimal). For example, if the cost is $1.50 and the markup is 20%, the calculation is $1.50 * 0.20 = $0.30.

Front

What is a markdown?

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

Front

How do you calculate the amount of a markdown?

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To calculate the amount of a markdown, multiply the original price by the markdown percentage (expressed as a decimal). For example, if the original price is $29.99 and the markdown is 10%, the calculation is $29.99 * 0.10 = $2.99.

Front

What is the selling price after a markup?

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The selling price after a markup is calculated by adding the markup amount to the original cost price. For example, if a notebook costs $1.50 and has a $0.30 markup, the selling price is $1.50 + $0.30 = $1.80.

Front

What is the final price after applying sales tax?

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The final price after applying sales tax is calculated by multiplying the total amount by (1 + sales tax rate). For example, if the total is $35.50 and the sales tax is 4.5%, the final price is $35.50 * (1 + 0.045) = $37.10.

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What is the formula for calculating the selling price with a markup?

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The formula for calculating the selling price with a markup is: Selling Price = Cost Price + (Cost Price * Markup Percentage).

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What is the formula for calculating the final price with a markdown?

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The formula for calculating the final price with a markdown is: Final Price = Original Price - (Original Price * Markdown Percentage).

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How do you express a percentage as a decimal?

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To express a percentage as a decimal, divide the percentage by 100. For example, 20% as a decimal is 0.20.

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What is the relationship between cost price, markup, and selling price?

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The relationship is: Selling Price = Cost Price + Markup.