Mark Up and Mark Down Review

Front

What is markup in pricing?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit. It is usually expressed as a percentage of the cost price.

Front

How do you calculate the total cost after applying a markup?

Back

To calculate the total cost after applying a markup, use the formula: Total Cost = Cost Price + (Cost Price × Markup Percentage).

Front

What is the formula to calculate the final cost including sales tax?

Back

Final Cost = Purchase Price + (Purchase Price × Sales Tax Rate).

Front

How do you calculate the amount saved when comparing prices with different sales tax rates?

Back

To calculate the amount saved, find the final cost of both prices including tax and subtract the lower final cost from the higher final cost.

Front

What is the difference between a tip percentage and a sales tax percentage?

Back

A tip percentage is an amount given to service workers based on the service provided, while a sales tax percentage is a government-imposed tax on the sale of goods and services.

Front

How do you calculate the tip amount based on a percentage?

Back

Tip Amount = Total Bill × Tip Percentage.

Front

What is the significance of rounding in financial calculations?

Back

Rounding is important in financial calculations to ensure that amounts are presented in a standard format, typically to the nearest cent.

Front

How do you determine the difference in tip amounts based on different percentages?

Back

To determine the difference in tip amounts, calculate the tip for each percentage and subtract the smaller tip from the larger tip.

Front

What is the total cost of an item after a 75% markup on a $1200 item?

Back

The total cost is $2100, calculated as $1200 + ($1200 × 0.75).

Front

If an item costs $90 and has a 7% sales tax, what is the final cost?

Back

The final cost is $96.30, calculated as $90 + ($90 × 0.07).