Markups and Markdowns

Front

What is a markup?

Back

A 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 a markdown?

Back

A markdown is a reduction in the original selling price of a product. It is often used to encourage sales and is expressed as a percentage of the original price.

Front

How do you calculate the discount amount?

Back

To calculate the discount amount, multiply the original price by the discount percentage (in decimal form). For example, for a $200 item with a 25% discount: $200 x 0.25 = $50.

Front

If an item costs $100 and has a 20% markup, what is the selling price?

Back

The selling price is calculated by adding the markup to the cost price. Selling Price = Cost Price + (Cost Price x Markup Percentage). So, Selling Price = $100 + ($100 x 0.20) = $120.

Front

What is the formula to find the final price after applying a discount?

Back

Final Price = Original Price - Discount Amount. Alternatively, Final Price = Original Price x (1 - Discount Percentage).

Front

If a dress originally costs $120 and is on sale for 20% off, how much does it cost after the discount?

Back

The discount amount is $120 x 0.20 = $24. Therefore, the final price is $120 - $24 = $96.

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price that is added to the cost of goods and services. It is collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by (1 + Sales Tax Rate). For example, if the original price is $100 and the sales tax is 6%, Total Cost = $100 x (1 + 0.06) = $106.

Front

If a store offers a 50% discount on purchases over $80, how do you determine if you qualify?

Back

Add up the total cost of your items. If the total is greater than $80, you qualify for the 50% discount.

Front

What is the difference between gross price and net price?

Back

Gross price is the total price before any discounts or taxes are applied. Net price is the final price after all discounts and taxes have been applied.