Markups & Discounts

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

How do you calculate the selling price using markup?

Back

Selling Price = Cost Price + (Markup Percentage × Cost Price)

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Discount Percentage × Original Price)

Front

If a TV is sold for $225 after a 75% discount, what was the original price?

Back

Original Price = Selling Price / (1 - Discount Percentage) = $225 / (1 - 0.75) = $900.

Front

If a product costs $50 and has a markup of 10%, what is the selling price?

Back

Selling Price = Cost Price + (Markup Percentage × Cost Price) = $50 + (0.10 × $50) = $55.

Front

What is the formula to find the cost price if you know the selling price and markup?

Back

Cost Price = Selling Price / (1 + Markup Percentage)

Front

If a lamp originally costs $55 and is discounted by 15%, what is the discount amount?

Back

Discount Amount = Discount Percentage × Original Price = 0.15 × $55 = $8.25.

Front

What is the difference between markup and discount?

Back

Markup is the amount added to the cost price to determine the selling price, while a discount is a reduction from the original selling price.

Front

How do you express a markup of 30% as a decimal?

Back

Markup Percentage as Decimal = 30% = 0.30.