Practice: Markup, Markdown, Discount

Front

What is a markdown?

Back

A markdown is a reduction in the original price of a product, often used to encourage sales.

Front

How do you calculate the discounted price after a markdown?

Back

To calculate the discounted price, subtract the markdown amount from the original price.

Front

What is the formula for calculating a discount?

Back

Discount = Original Price x Discount Rate.

Front

If an item costs $50 and has a 20% discount, what is the discounted price?

Back

$40.

Front

What does markup mean in pricing?

Back

Markup is the amount added to the cost price of a product to determine its selling price.

Front

How do you calculate the selling price using markup?

Back

Selling Price = Cost Price + Markup Amount.

Front

If a product costs $30 and has a 25% markup, what is the selling price?

Back

$37.50.

Front

What is the difference between markup and discount?

Back

Markup increases the price, while discount decreases the price.

Front

If a store has a 15% markup on a $20 item, what is the selling price?

Back

$23.

Front

What is the term for the original price before any markdowns or markups?

Back

The original price is often referred to as the 'list price' or 'retail price'.