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 markup?

Back

To calculate the total cost after markup, multiply the original cost by the markup percentage (as a decimal), then add that amount to the original cost. Formula: Total Cost = Original Cost + (Original Cost * Markup Percentage).

Front

What is the formula to calculate a tip based on a percentage?

Back

To calculate a tip, multiply the total bill amount by the tip percentage (as a decimal). Formula: Tip = Total Bill * Tip Percentage.

Front

How do you calculate the difference in tips between two percentages?

Back

To find the difference in tips, calculate each tip using the respective percentages, then subtract the smaller tip from the larger tip.

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the sale price.

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal) and add that to the original price. Formula: Total Cost = Original Price + (Original Price * Sales Tax Rate).

Front

What is the difference between a discount and a sale?

Back

A discount is a reduction in the price of a product, while a sale refers to a temporary price reduction or promotion to encourage purchases.

Front

How do you determine which item is cheaper after applying discounts?

Back

To determine which item is cheaper, calculate the final price of each item after applying the discount and compare the two final prices.

Front

What is the importance of rounding in financial calculations?

Back

Rounding is important in financial calculations to ensure accuracy and clarity, especially when dealing with currency, where cents are involved.

Front

How do you compare prices of items with different sales tax rates?

Back

To compare prices, calculate the total cost of each item including sales tax, then compare the final amounts.