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

How do you calculate the selling price using markup?

Back

Selling Price = Cost Price + (Markup Percentage × 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 or clear out inventory.

Front

How do you calculate the sale price after a markdown?

Back

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

Front

What is sales tax?

Back

Sales tax is a percentage added to the price of goods and services, collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

Total Cost = Price + (Sales Tax Percentage × Price)

Front

What is a tip?

Back

A tip is a small amount of money given to service workers, typically calculated as a percentage of the total bill.

Front

How do you calculate the total amount spent including a tip?

Back

Total Amount = Meal Cost + (Tip Percentage × Meal Cost)

Front

What is the formula for calculating a percentage?

Back

Percentage = (Part / Whole) × 100

Front

If an item costs $50 and is marked up by 20%, what is the selling price?

Back

Selling Price = $50 + (20% × $50) = $60