Business Math Day 6

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Business Math Day 6

• Markup and Markdown

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Markup and Markdown

• Find the cost, markup or selling price when any
  two of the three are known.
• Find the percent of markup based on the cost when
  the cost and selling price are known.
• Find the selling price when the cost and percent
  of markup based on the cost are known.
• (continued)

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Markup and Markdown(continued)

• Find the cost when the amount of markup and the
  percent of markup based on the cost are known.
• Find the cost when the selling price and the
  percent of markup based on the cost are known.

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Cost Markup Selling Price

• Markup Selling price Cost
• Cost Selling price - Markup

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Try these examples.

• If an item sells for 20 and has a markup of
  12, what is the cost of the item?
• Answer 8
• If an item costs 16 and is sold for 20, what
  is the markup of that item?
• Answer 4

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Find the percent of markup based on the cost when
the cost and selling price are known.

• When the markup is based on cost
• The rate of cost is always 100

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• A retailer can buy a shirt from a wholesaler at
  10.00.
• The retailer will add 5.00 to the cost.
• The retailer then sells it for 15.00.

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P R x B

Using the formulaMarkup rate of markup x
costChange the equation so the rate of markup
is equal to markup divided by the cost.
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Rate of markup based on cost

• The shirt

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Five Step Solution Plan

• 1. What you know
• Rate of cost always equals 100 MU and C
  values.
• 2. What you are looking for?
• Rate of markup and rate of selling price
• 3. Solution plan
• Rate of markup MU divided by cost
• 4. Solution
• Carry out operation
• 5. Conclusion
• Add rate of MU to C to find rate of SP. Does it
  make sense?

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Substitute the known values

• A shirt that costs 10 and sells for 15 has a
  markup rate of 50
• 5 divided by 10 is equal to .5 or 50
• Rate of markup based on cost is equal to 50

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Try these examples

• Dukes photography pays 9 for a 5x7 photograph.
  If the photograph is sold for 15, what is the
  percent of markup based on cost?
• Answer 66.67
• Lilly buys tea from England for 4 a box and
  sells it in The Tea Party for 12 a box. Find
  the percent of markup based on cost.
• Answer 200

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Find the selling price when the cost and percent
of markup based on the cost are known

• A boutique pays 5 a pair for handmade earrings
  and sells them at a 50 markup based on cost.
  Find the selling price of the earrings.

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Find the selling price

• The rate of the selling price is found by adding
  the rate of cost (100) to the rate of markup.
• Selling price Rate of selling price
• (based on cost) x cost.

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Do these examples.

• What is the selling price for a CD which costs
  the retailer 8.00 and is marked up 60 based on
  cost?
• Answer 12.80
• What is the selling price for a set of
  hairbrushes which cost the salon 12.00 and is
  marked up 150 based on cost?
• Answer 30

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Find the cost when the amount and the percent of
markup are known.

• A DVD movie is marked up 6.50 which represents
  a 40 markup based on cost. What is the cost of
  the DVD?

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Find the cost by dividing the markup amount by
the markup rate

• Cost Markup
• Markup rate
• Cost 6.50
• 40 or 0.4
• Cost 16.25

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Try these two examples

• Find the cost of a box of ballpoint pens which
  has been marked up 4 and has a markup rate of
  30.
• Answer 13.33
• Find the cost of a pair of shoes that has been
  marked up 25 and has a markup rate of 50.
• Answer 50

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Find the cost when the selling price and the
percent of markup based on cost are known.

• A camera sells for 20. The markup rate is 50
  of the cost. Find the cost of the camera and the
  markup.

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Find the cost by dividing the selling price by
the rate of the selling price

• Cost Selling price
• Rate of the selling price
• Cost 20
• 150 (or 1.5)
• Cost 13.33

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Try these examples.

• Find the cost and markup of a bicycle tire which
  sells for 18 and is marked up 50 of the cost.
• Answer 12 and 6
• Find the cost and markup of a moisturizing cream
  which sells for 30 and is marked up 150 of the
  cost.
• Answer 12 and 18

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9.2 Markup based on selling price and markup
comparisons

• Find the amount of markup and the percent of
  markup based on selling price when the cost and
  selling price are known.
• Find the selling price when the amount of markup
  and the percent of markup based on selling price
  are known.
• (continued)

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9.2 Markup based on selling price and markup
comparisons(continued)

• Find the selling price when the cost and the
  percent of markup based on the selling price are
  known.
• Find the cost when the selling price and the
  percent of markup based on the selling price are
  known.
• Compare the markup based on cost with the markup
  based on selling price.

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Take note!

• In the previous section, the markup based on
  cost, the rate of cost was always 100.
• In this section, the markup based on selling
  price, the rate of selling price is always 100.

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Find the amount of markup and the percent of
markup.

• A calculator costs 5 and sells for 10. Find
  the rate of markup based on the selling price.

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Find the rate of markup by dividing the markup by
the selling price and multiplying it by 100

• The markup amount is the difference between the
  selling price and the cost.
• Divide the markup by the selling price to get the
  difference and then multiply it by 100, to get
  the rate of markup.

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Find the amount of markup and the percent of
markup (based on SP ) for the following items

• A dog collar which costs 4 and sells for 10.
• Answer 6 and 60
• A notebook which costs 1.25 and sells for 2.
• Answer .75 and 37.5

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Find the selling price when the amount of markup
and the percent of markup based on the selling
price are known.

• Subtract the percent of markup from 100 to
  obtain the rate of cost.
• Divide the markup by the rate of markup based on
  SP

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Find the cost and selling price if a handbag is
marked up 5 with a 20 markup rate based on
selling price.
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Find the selling price and the amount of the
markup

• SP Markup
• Rate of Markup based on selling price
• SP 5
• 20 or 0.2
• SP 25

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Find the selling price and amount of markup based
on selling price for the following items

• A cell phone which has been marked up 50 and
  with a markup rate of 33 based on selling price.
• Answer 150
• A pair of socks which has been marked up 3 and
  with a markup rate of 60 based on selling price.
• Answer 5

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Find the selling price when the cost and the
percent of markup based on selling price are
known.

• Subtract the rate of markup from 100 to
  determine the rate of cost.
• Selling price Cost divided by
• Rate of Cost based on SP

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Find the selling price and markup for a pair of
jeans which costs the retailer 28.

• What is the selling price?

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To find the selling price, divide the cost by the
rate of cost

• SP Cost
• Rate of cost
• SP 28
• 70 0.7
• SP 40

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Find the selling price and markup (based on
selling price) for the following items

• A handheld calculator that costs the retailer 2
  and is marked up 60.
• Answer 5 and 3
• A box of gourmet chocolates that costs 8 a box
  and is marked up 75.
• Answer 32 and 24

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Find the cost when the selling price and percent
of markup based on selling price are known.

• Subtract the rate of markup from the rate of
  selling price to determine the rate of cost.

Cost Rate of Cost x Selling Price
37
Find the markup and cost of a box of pencils that
sells for 2.99 and is marked up 25 of the
selling price.

• First, find the rate of cost.

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Compare the markup based on cost with markup
based on selling price

• Find the markup based on cost and the markup
  based on selling of a computer that costs 1,500
  and sells for 2,000.

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What is the difference?

• The percentage of markup based on cost is 33.33.
• The percentage of markup based on selling price
  is 25.
• What accounts for the difference?

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Converting a markup based on selling price to a
markup based on cost.

• The markup rate based on cost is equal to the
  markup rate based on selling price divided by
  100 minus the markup rate based on selling price.

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Converting a markup based on cost to a markup
based on selling price.

• The markup rate based on selling price is equal
  to the markup rate based on cost divided by the
  markup rate based on cost plus 100.

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9.3 Markdown, Series of Markdowns and Perishables

• Find the amount of markdown, the reduced (new)
  price, and the percent of the markdown.
• Find the final selling price for a series of
  markup and markdowns.
• Find the selling price for a desired profit on
  perishable and seasonal goods.

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Find the amount of markdown, the reduced (new)
price and the percent of the markdown.
The original selling price is always 100
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Find the markdown and rate of markdown

• The markdown is found by subtracting the new
  price from the original price.
• The markdown rate is found by dividing the
  markdown by the original price and multiplying
  that figure by 100.

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A lamp originally sold for 36 and is marked
down to sell for 30. Find the markdown and rate
of markdown.
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Find the final selling price for a series of
markup and markdowns.

• Each new price becomes the base.
• For markups based on cost, multiply the base by 1
  the rate of markup.
• For markdowns, multiply the base by the
  complement of the rate of markdown.

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Find the final selling price

• Find the final price for an item that cost 18,
  marked up by 20 and then, was marked down 33,
  and subsequently marked up 10 and finally marked
  down by 50 for clearance.
• Answer 7.96

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Find the selling price for a desired profit on
perishable and seasonal goods.

• Determine the cost by multiplying the unit price
  by the quantity.
• Determine the markup rate and amount and add to
  the cost.
• Establish the expected to sell amount.
• Divide the total selling price by the expected to
  sell amount.

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Find the per pound selling price

• Mr. Green buys 100 pounds of tomatoes at .15 lb.
  and establishes a markup rate of 120 based on
  cost. What is the total cost?
• TC 15 MU18 Total SP 33
• He expects to sell 90. How many pounds is he
  expected to sell?
• Expected to sell 90
• Divide the TSP by expected to sell number.
• SP 0.37 lb. (rounded)

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Homework / Lab work

• Homework due at the end of the week
• Chapter 9 Exercises Set A
• Lab work
• Online Lab 6