12/9/24 practice 3-5 Markup & Markdown

Front

What is markup in pricing?

Back

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.

Front

How do you calculate the markup percentage?

Back

Markup Percentage = ((Selling Price - Cost Price) / Cost Price) x 100.

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Percentage).

Front

What is the formula to calculate the total cost including tax?

Back

Total Cost = Food Bill + (Food Bill x Tax Rate).

Front

How do you calculate a tip based on the total bill?

Back

Tip Amount = Total Bill x Tip Percentage.

Front

What is the difference between original price and sale price?

Back

Original Price is the initial price of an item before any discounts, while Sale Price is the price after discounts are applied.

Front

If a product costs $50 and is marked up by 20%, what is the selling price?

Back

Selling Price = Cost Price + (Cost Price x Markup Percentage) = $50 + ($50 x 0.20) = $60.

Front

What does '25% off' mean?

Back

'25% off' means that the price of an item is reduced by 25% of its original price.

Front

How do you find the amount of a markdown?

Back

Markdown Amount = Original Price x Markdown Percentage.