Markups and Markdowns

Front

What is a markup?

Back

A markup is an increase in the price of a product, usually expressed as a percentage of the cost price.

Front

What is a markdown?

Back

A markdown is a reduction in the selling price of a product, typically expressed as a percentage of the original price.

Front

How do you calculate the discount amount?

Back

Discount Amount = Original Price x Discount Rate.

Front

How do you find the sale price after a discount?

Back

Sale Price = Original Price - Discount Amount.

Front

If a product costs $100 and has a 20% markup, what is the selling price?

Back

Selling Price = Cost Price + (Cost Price x Markup Rate) = $100 + ($100 x 0.20) = $120.

Front

If a dress originally costs $80 and is marked down by 25%, what is the sale price?

Back

Sale Price = Original Price - (Original Price x Markdown Rate) = $80 - ($80 x 0.25) = $60.

Front

What is the formula to calculate the total cost including tax?

Back

Total Cost = Item Price + (Item Price x Tax Rate).

Front

If a meal costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

Front

How do you calculate a tip based on the total bill?

Back

Tip Amount = Total Bill x Tip Rate.

Front

If the total bill is $30 and you want to leave a 15% tip, how much is the tip?

Back

Tip Amount = $30 x 0.15 = $4.50.