Markup and Markdown

Front

What is markup?

Back

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 markdown?

Back

Markdown is a reduction in the original selling price of a product. It is often used to encourage sales and clear out inventory.

Front

How do you calculate the final price including sales tax?

Back

Final Price = Original Price + (Original Price × Sales Tax Rate).

Front

If a product costs $100 and has a 10% markup, what is the selling price?

Back

Selling Price = $100 + ($100 × 0.10) = $110.

Front

If a jacket originally costs $85 and is sold at a 40% discount, how much do you pay?

Back

Amount Paid = Original Price - (Original Price × Discount Rate) = $85 - ($85 × 0.40) = $51.

Front

What is the formula to find the original price before a discount?

Back

Original Price = Sale Price / (1 - Discount Rate).

Front

How do you calculate the amount of sales tax on a purchase?

Back

Sales Tax Amount = Purchase Price × Sales Tax Rate.

Front

If a phone is on sale for $799 and this is 20% off, what was the original price?

Back

Original Price = Sale Price / (1 - Discount Rate) = $799 / (1 - 0.20) = $998.75.

Front

What is the sales tax on a $899 TV with a tax rate of 6.5%?

Back

Sales Tax = $899 × 0.065 = $58.44.

Front

What does a 20% discount mean?

Back

A 20% discount means that the price is reduced by 20% of the original price.