Taxes and Markup Lesson

Markup and Markdown Problems

Please go through the slides, watch videos that are attached and complete the activities within this lesson.

Markup/ Selling Price

Markup is the amount of increase from the cost of an item to its selling price. The markup as a present increase from the original cost is the percent markup.

Selling Price is equal to the markup plus the original cost of the product.

Multiple Choice

An item cost $4 before tax and $4.32 after tax. What is the sales tax rate? [This is the same as markup and percent markup, only we are using the words tax and sales tax aka percent the tax is ]

• 1.08%

• 108%

• 0.08%

• 8%

Markdown

Markdown is the decrease from the original price of an item to its sale price. The markdown as a percent decrease of the original price is the percent markdown.

Multiple Choice

A $300 suit is marked down by 20%. Find the sale price rounded to the nearest dollar.

• $360

• $240

• $60

• $6000

Multiple Choice

Karen purchased a DVD player for $153.77. It was originally $175.90. Find the percent markdown rounded to the nearest percent.

• 12%

• 13%

• 87%

• 88%

Poll

How are you feeling about this topic?!?!

• I am a pro fo sho!

• Ehhh, could use a bit more practice

• I think I am getting it :D

• HELP!!!!!!!!