Business Math: Markups, Markdowns, & Taxes

Business Math: Markup, Discounts, & Taxes

We GET Money!

Poll

Are you interested in owning your own business one day?

• Yes! Most definitely!

• That's not my passion!

• I'm not really sure yet.

The Why?

• Owning a Business requires more skill than creating a product or offering a service

• Understanding of finance is key to a successful business

• Understanding basic business math is necessary for profitable operations and accurate record-keeping.

What you need to Know

• Knowing how to add, subtract, multiply, divide, round, and use percentages and fractions is the minimum you need to price your product and meet your budget

• Knowing this information is important regardless of what profession you choose because it makes you a better consumer

Markup

What is Markup?

Markup

The difference between the selling price of a good or service and cost

Calculating Markup

• To calculate Markup in Dollars simply subtract the Original Price from the Selling Price (Selling Price-Original Price)

• To calculate Markup Percentage divide the Markup in Dollars by the Original Price

Multiple Choice

Apple Airpods cost $69 to produce. They sell for $159. What is the markup?

• $100

• $80

• $159

• $90

Multiple Choice

The Kyrie 7 "Rayguns" sell for $170, but they cost $60 to make. What is the markup?

• $110

• $60

• $100

• $120

Multiple Choice

Rihanna Fenty Beauty Gloss Bomb Universal Lip Luminizer sells for $19. It cost $7 to produce. What is the markup?

• $10

• $12

• $18

• $9

Markup Percentage

Markup in Dollars/Original Price

Multiple Choice

What is 2.06 as a percentage?

• 20.6%

• 206%

• 2.06%

• .206%

Multiple Choice

Tru Detergent retails for $13. If it cost $6 to produce what is the Markup%? Round to the nearest whole percent.

• 1.167%

• 117%

• 100%

• 11%

Multiple Choice

BLK & Bold Coffee sells for $13. If it costs $9 to produce, what is the markup%?

• 4%

• 44%

• 40%

• 25%

Multiple Choice

The BabyGirl edge brush by The Doux sells for $12. If it costs $7 to produce, what is the markup percentage?

• 70%

• 60%

• 71%

• 75%

Markdown

Markdown is a discount or a reduction in price

Calculating Markdown

Selling Price X Discount% (Decimal Form)

Multiple Choice

Discounts are ________ from the price.

• subtracted

• added

• multiplied

• divided

Multiple Choice

A $10 shirt is on sale for 25% off the price. What is the sale price of the shirt?

• $7.50

• $2.50

• $12.50

• $17.50

Multiple Choice

A video store’s regular price of a video is $25.95, and it’s on sale for 25% off. What is the sale price of the video?

• $19.46

• $25.75

• $6.49

• $32.44

Multiple Choice

If you receive 25% off an item costing $22.00, how much money do you save?

• $ 5.50

• $ 4.25

• $6.00

• $7.35

Multiple Choice

Sales tax is __________ to the price

• subtracted
• added
• multiplied
• divided

Multiple Choice

How much tax would you pay on a new TV that is $899 at Best Buy, if the tax rate is 6.5%?

• $957.44

• $841

• $58.43

• $905.50

Multiple Choice

If you receive 25% off an item costing $22.00, how much money do you save?

• $ 5.50

• $ 4.25

• $6.00

• $7.35