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 the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal) and then add that amount to the original price.

Front

If an item costs $50 and has a sales tax of 8%, what is the total cost?

Back

Total cost = $50 + ($50 * 0.08) = $54.

Front

What does 'percent off' mean in sales?

Back

'Percent off' refers to the discount given on the original price of an item, expressed as a percentage.

Front

If a shirt originally costs $30 and is on sale for 20% off, what is the sale price?

Back

Sale price = $30 - ($30 * 0.20) = $24.

Front

How do you calculate the amount saved during a sale?

Back

To calculate the amount saved, multiply the original price by the discount percentage (as a decimal).

Front

If a dining table costs $1,200 and is 25% off, how much do you save?

Back

Amount saved = $1,200 * 0.25 = $300.

Front

What is commission in sales?

Back

Commission is a fee paid to an employee based on the sales they generate, usually expressed as a percentage of the sales amount.

Front

If a salesperson earns 10% commission on $500 in sales, how much do they earn?

Back

Commission earned = $500 * 0.10 = $50.