Discounts + Markups

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Rate)

Front

What is a markup?

Back

A markup is an increase in the original price of a product or service, often expressed as a percentage.

Front

How do you calculate the selling price after a markup?

Back

Selling Price = Original Price + (Original Price x Markup Rate)

Front

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

Back

Sale Price = $100 - ($100 x 0.20) = $80

Front

If a skateboard is sold for $90 after a 50% markup, what was the original price?

Back

Original Price = Selling Price / (1 + Markup Rate) = $90 / 1.50 = $60

Front

What is the formula to find the markup percentage?

Back

Markup Percentage = (Selling Price - Cost Price) / Cost Price x 100%.

Front

If a couch costs $125 and has a 40% markup, what is the selling price?

Back

Selling Price = $125 + ($125 x 0.40) = $175

Front

What is the difference between a discount and a markup?

Back

A discount reduces the price of an item, while a markup increases the price.

Front

If a jeweler sells a ring for $630 that cost $360 to make, what is the markup percentage?

Back

Markup Percentage = (($630 - $360) / $360) x 100% = 75%.