Unit 4 Discount and Markup Flashcard

Front

What is a discount?

Back

A discount is a reduction in the regular price of a product or service, usually expressed as a percentage.

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Regular Price - (Regular Price x Discount Percentage)

Front

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

Back

Sale Price = $50 - ($50 x 0.20) = $40.

Front

What is markup?

Back

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

Front

How do you calculate the selling price with markup?

Back

Selling Price = Cost Price + (Cost Price x Markup Percentage)

Front

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

Back

Selling Price = $30 + ($30 x 0.25) = $37.50.

Front

What is the original price if an item is sold for $80 after a 20% discount?

Back

Original Price = Sale Price / (1 - Discount Percentage) = $80 / (1 - 0.20) = $100.

Front

Convert 0.4 to a percentage.

Back

0.4 as a percent is 40%.

Front

If a phone costs $600 and is on sale for 15% off, what is the sale price?

Back

Sale Price = $600 - ($600 x 0.15) = $510.

Front

What is the formula to find the discount amount?

Back

Discount Amount = Regular Price x Discount Percentage.