Discounts and 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 Percentage)

Front

If an item costs $100 and is on sale for 20% off, what is the sale price?

Back

$80

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 = Cost Price + (Cost Price x Markup Percentage)

Front

If a product costs $50 and has a 30% markup, what is the selling price?

Back

$65

Front

What is the effective discount when applying multiple discounts?

Back

The effective discount is calculated by applying each discount sequentially, not by simply adding them together.

Front

If an item is 50% off and then an additional 20% off, what is the effective discount?

Back

Effective Discount = 50% off first, then 20% off the reduced price, resulting in an effective discount of 60%.

Front

What is the formula to find the final price after applying multiple discounts?

Back

Final Price = Original Price x (1 - Discount1) x (1 - Discount2) ...

Front

What is the difference between a discount and a markdown?

Back

A discount is a temporary reduction in price, while a markdown is a permanent reduction in the original price.