Understanding Markups and Markdowns

This video tutorial explains how to calculate markup and markdown using percentages. It covers the basic steps of determining whether a problem involves a markup or markdown, converting percentages to decimals, and performing the necessary multiplication to find the new price. The tutorial includes three examples: calculating markdown for a sale item, markup with sales tax, and retail markup on wholesale prices. The video concludes with a review of the key concepts.

What is the first step in solving a problem involving markups or markdowns?

• Determine if it is a markup or markdown

• Convert the percentage to a decimal

• Multiply the original price by the percentage

• Subtract the percentage from 100

If an item is marked down by 40%, what percentage of the original price are you paying?

• 60%

• 40%

• 140%

• 100%

How do you convert a percentage to a decimal?

• Add 100 to the percentage

• Subtract the percentage from 100

• Move the decimal two places to the left

• Multiply by 100

What is the sale price of a pair of shorts originally priced at $24.99 with a 40% markdown?

• $24.99

• $9.99

• $14.99

• $19.99

When calculating a markup due to sales tax, what is the first step?

• Convert the tax percentage to a fraction

• Multiply the original price by the tax percentage

• Add the tax percentage to 100

• Subtract the tax percentage from 100

What is the total price of a bracelet priced at $13.50 with a 6% sales tax?

• $15.00

• $14.31

• $13.50

• $14.50

If a retailer marks up clothing by 27%, what is the new percentage of the original price?

• 73%

• 127%

• 150%

• 100%

What is the retail price of an item originally priced at $23.75 with a 27% markup?

• $31.25

• $30.16

• $27.75

• $23.75

What is the final step in calculating a new price after determining the markup or markdown?

• Add the original price to the percentage

• Divide the original price by the percentage

• Subtract the percentage from the original price

• Multiply the original price by the decimal

What should you do if a problem involves a markdown?

• Add the percentage to 100

• Subtract the percentage from 100

• Divide the percentage by 100

• Multiply the percentage by 100