Classwork: Practice on Markup

Front

What is markup in pricing?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

Front

How do you calculate the selling price using markup?

Back

Selling Price = Cost Price + Markup.

Front

What is the formula to find the markup rate based on cost?

Back

Markup Rate = (Markup / Cost Price) x 100.

Front

What is the formula to find the markup rate based on selling price?

Back

Markup Rate = (Markup / Selling Price) x 100.

Front

If a product costs $20 and is sold for $30, what is the markup?

Back

Markup = Selling Price - Cost Price = $30 - $20 = $10.

Front

If a store marks up a product by 25% based on cost, what is the selling price of a product that costs $40?

Back

Selling Price = Cost Price + (Markup Rate x Cost Price) = $40 + (0.25 x $40) = $50.

Front

What is the cost price if a product is sold for $80 with a markup of $20?

Back

Cost Price = Selling Price - Markup = $80 - $20 = $60.

Front

If a store pays $10 for a product and marks it up by 50%, what is the selling price?

Back

Selling Price = Cost Price + (Markup Rate x Cost Price) = $10 + (0.50 x $10) = $15.

Front

What is the markup rate if a product costs $50 and is sold for $75?

Back

Markup Rate = ((Selling Price - Cost Price) / Cost Price) x 100 = (($75 - $50) / $50) x 100 = 50%.

Front

If a store wants to achieve a markup rate of 40% based on selling price, what should be the markup on a product sold for $100?

Back

Markup = Selling Price x (Markup Rate / (1 + Markup Rate)) = $100 x (0.40 / 1.40) = $28.57.