Markup and Markdown

Front

What is Markup?

Back

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 Markdown?

Back

Markdown is a reduction in the selling price of a product. It is often expressed as a percentage of the original price.

Front

How do you calculate the original price after a discount?

Back

To find the original price, divide the sale price by (1 - discount rate). For example, if a shirt is $20 after a 15% discount, the original price is $20 / (1 - 0.15) = $23.53.

Front

What is the formula to calculate the final price including tax?

Back

Final Price = Price + (Price x Tax Rate). For example, if a TV costs $990 and the tax rate is 9%, the final price is $990 + ($990 x 0.09) = $1,079.10.

Front

If a jacket is originally $85 and is on sale for 40% off, how do you find the sale price?

Back

Sale Price = Original Price - (Original Price x Discount Rate). For the jacket, Sale Price = $85 - ($85 x 0.40) = $51.

Front

What is the sale price of an item that costs $94.99 with a 25% discount?

Back

Sale Price = Original Price - (Original Price x Discount Rate). Sale Price = $94.99 - ($94.99 x 0.25) = $71.24.

Front

How do you calculate the amount of tax on a purchase?

Back

Tax Amount = Price x Tax Rate. For a TV costing $899 with a 6.5% tax rate, Tax Amount = $899 x 0.065 = $58.44.

Front

What does 'percent off' mean?

Back

'Percent off' indicates the percentage reduction from the original price of an item. For example, a 15% off sale means you pay 85% of the original price.

Front

What is the difference between markup and markdown?

Back

Markup increases the price of an item above its cost, while markdown decreases the selling price from its original price.

Front

How do you express a discount as a decimal?

Back

To express a discount as a decimal, divide the percentage by 100. For example, a 15% discount is expressed as 0.15.