TARGET I can understand Markups and Discounts. Terminology Selling Price - The price retailers...

TARGET

I can understand Markups and Discounts

TerminologySelling Price - The

price retailers charge customers

Cost - The price retailers pay to a

manufacturer

Markup - The difference between the

cost of bringing the goods into the store and the selling price

Operating expenses - The regular expenses of doing business such as rent, wages, utilities,

etc.

Net profit - The profit remaining after subtracting the cost of bringing the goods into the store and the operating expenses

Markup and DiscountMarkup and Discount

Markup and Discount are like tax, Markup and Discount are like tax, commission, and tip questions.commission, and tip questions.

Markup vs. DiscountMarkup vs. Discount

MarkupMarkupA retail store buys A retail store buys

items at items at wholesale wholesale pricesprices. To cover . To cover expenses and make a expenses and make a profit, they sell items profit, they sell items at at higherhigher retail retail pricesprices. . The extra The extra amount is called amount is called the the markupmarkup.

DiscountDiscount

When an item is on When an item is on salesale, the store is , the store is selling the item for selling the item for lessless, so this is called , so this is called discountdiscount..

Basic Selling Price Formula

Selling price (S) = Cost (C) + Markup (M)

$1,200Computer $900 - Price

paid to bring computerinto store

$300 Dollars to

cover expenses and

profit

MarkupMarkup

A store buys a shirt at A store buys a shirt at a wholesale price of a wholesale price of $13.50 and sells the $13.50 and sells the shirt for $24.95. How shirt for $24.95. How much was it marked much was it marked up?up?

Finding the percent Finding the percent of markup.of markup.

$11.45 = 84.8% or 85%

24.94-13.50=

What is the percent of What is the percent of markup for the shirt?markup for the shirt?

% of Markup = MarkupCost

= 11.4513.50

Finding the amount Finding the amount of markup.of markup.

Markup=Selling Price - Cost

MarkupMarkup1) A store buys a pair of shoes at a wholesale 1) A store buys a pair of shoes at a wholesale

price of $37.50 and sells them for $50. price of $37.50 and sells them for $50. What is the amount of markup?What is the amount of markup?

2) What is the percent of markup for the pair 2) What is the percent of markup for the pair of shoes?of shoes?

Markup = $50 – $37.50 = $12.50

% of Markup = MarkupCost

$12.50$37.50

= =0.33…= 33.33%

Markup=Selling Price - Cost

MARKUP PRICE = COST + MARKUP

DiscountDiscount

What is the What is the percent of percent of discount for discount for the book?the book?$9.00

A $36 book is on sale for A $36 book is on sale for $27. What is the amount $27. What is the amount of discount?of discount?

Discount = Markup Price – Sale Price

Discount = $36 - $27=$9

% Discount = DiscountMarkup Price

936

% Discount = = 0.25=25%

DiscountDiscount

1)1) A $90 coat is on sale for $76.50. What is the A $90 coat is on sale for $76.50. What is the amount of discount?amount of discount?

2)2) What is the percent of discount for the What is the percent of discount for the coat?coat?

Discount = $90 - $76.50 = $13.50

Discount = Markup Price – Sale Price

% Discount = DiscountMarkup Price

13.5090

% Discount = = 0.15=15%

Classwork

Packet Mark-ups, Discount & Taxes

Exit Ticket

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