Pricing Formula Flashcard

Front

What is the formula for determining the selling price of a product or service?

Back

Selling Price = (Cost x Desired Profit Margin) + Cost

Front

What is the definition of Selling Price?

Back

The amount a business sells its product or service for

Front

What does Cost refer to in a business context?

Back

The amount the business pays in materials and labor

Front

How is Desired Profit Margin usually represented?

Back

As a percentage

Front

What is the profit margin for Mary Jane's soap sales if she makes each bar for $1.25 and sells it to the Craft Barn for $3.00?

Back

$1.75

Front

Home Depot pays $15.99 for a pack of nails. If they markup them up $9.80, what is the markup rate based on selling price?

Back

61%

Front

A grocery store has a 20% markup based on selling price on bottle of soda. The bottle of soda costs the store $1.25. Find the selling price. Round to nearest cent if necessary.

Back

$1.56

Front

American Eagle sells jeans for $49.99 after marking up the price by $13.50. What is the cost to American Eagle for the jeans?

Back

$36.49