Markups and Markdowns

Front

What is a markup?

Back

A markup is the amount added to the cost price of goods to cover overhead and profit. 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 clear out inventory.

Front

How do you calculate a percentage of a number?

Back

To calculate a percentage of a number, multiply the number by the percentage (in decimal form). For example, 20% of 100 is 100 * 0.20 = 20.

Front

If an item costs $50 and has a markup of 30%, what is the selling price?

Back

Selling Price = Cost + (Markup Percentage * Cost) = $50 + (0.30 * $50) = $65.

Front

If a dress originally costs $80 and is marked down by 25%, what is the sale price?

Back

Sale Price = Original Price - (Markdown Percentage * Original Price) = $80 - (0.25 * $80) = $60.

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the sale price.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the sale price by the sales tax rate (in decimal form). For example, for a $100 item with a 6% sales tax, the tax is $100 * 0.06 = $6.

Front

If a meal costs $20 and the sales tax is 8%, what is the total cost including tax?

Back

Total Cost = Meal Cost + Sales Tax = $20 + ($20 * 0.08) = $21.60.

Front

What is a commission?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of the sales made.

Front

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

Back

Commission Earned = Sales Amount * Commission Rate = $500 * 0.10 = $50.