Markups and Markdowns

Front

What is a markup?

Back

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

Front

What is a markdown?

Back

A markdown is a reduction in the original selling price of a product. It is often used to encourage sales and is expressed as a percentage of the original price.

Front

How do you calculate sales tax?

Back

Sales tax is calculated by multiplying the cost of the item by the sales tax rate (as a decimal). For example, if an item costs $50 and the sales tax is 5%, the sales tax is $50 x 0.05 = $2.50.

Front

If an item costs $100 and has a 20% markup, what is the selling price?

Back

The selling price is $100 + ($100 x 0.20) = $100 + $20 = $120.

Front

If a dining table originally costs $1,250 and is on sale for 45% off, how much do you save?

Back

You save $1,250 x 0.45 = $562.50.

Front

What is the total cost if a meal costs $47.25 and a 20% tip is added?

Back

Total cost = $47.25 + ($47.25 x 0.20) = $47.25 + $9.45 = $56.70.

Front

How do you determine if you qualify for a discount based on total purchases?

Back

Add the costs of all items. If the total exceeds the threshold for the discount, you qualify.

Front

If Leo's items cost $41.20, $13.90, $5.50, and $26.30, what is the total cost?

Back

Total cost = $41.20 + $13.90 + $5.50 + $26.30 = $87.90.

Front

What is the formula for calculating the selling price after a markdown?

Back

Selling Price = Original Price - (Original Price x Markdown Percentage).

Front

If a toy car costs $15 and is marked up by 60%, what is the selling price?

Back

Selling price = $15 + ($15 x 0.60) = $15 + $9 = $24.