Understanding Markdown and Markup Concepts

The video tutorial explains markdown and discount calculations using examples. It starts with a $300 item with a 15% discount, showing how to calculate the new price by subtracting the discount from the original price. The tutorial then covers how to calculate the markdown percentage for a $200 item sold for $150, explaining the difference between markdown and markup calculations.

What is the initial selling price of the item before markdown?

• $255

• $150

• $300

• $200

What percentage discount is applied to the $300 item?

• 25%

• 10%

• 15%

• 20%

How much is the discount amount when a 15% markdown is applied to a $300 item?

• $45

• $50

• $55

• $30

What is the final price of the item after applying the markdown?

• $245

• $250

• $255

• $260

If an item is initially priced at $200 and sold for $150, what is the markdown amount?

• $70

• $60

• $50

• $40

How do you calculate the markdown percentage when the price drops from $200 to $150?

• Divide $50 by $150

• Divide $50 by $200

• Divide $150 by $200

• Divide $200 by $150

What is the markdown percentage when the price changes from $200 to $150?

• 25%

• 30%

• 35%

• 20%

In a markdown scenario, which price is typically higher?

• Initial price

• Final price

• Both are equal

• Depends on the item

What is the difference between markdown and markup?

• Both decrease the price

• Both increase the price

• Markdown decreases the price, markup increases it

• Markdown increases the price, markup decreases it

When calculating a markdown, which price is used as the divisor?

• The final price

• The higher price

• The lower price

• The average price