Ch. 6.6 - Homework 2 - Discounts and Markups

Front

What is a discount?

Back

A discount is a reduction in the original price of a product or service, usually expressed as a percentage.

Front

How do you calculate the sale price after a discount?

Back

To calculate the sale price after a discount, subtract the discount amount from the original price. The discount amount can be calculated by multiplying the original price by the discount percentage.

Front

What is a markup?

Back

A markup is an increase in the original cost of a product or service, usually expressed as a percentage of the cost.

Front

How do you calculate the selling price after a markup?

Back

To calculate the selling price after a markup, add the markup amount to the original cost. The markup amount can be calculated by multiplying the original cost by the markup percentage.

Front

If an item costs $50 and has a 20% discount, what is the sale price?

Back

The sale price is $40. (Discount = $50 * 0.20 = $10; Sale Price = $50 - $10 = $40.)

Front

If a store marks up a $100 item by 25%, what is the selling price?

Back

The selling price is $125. (Markup = $100 * 0.25 = $25; Selling Price = $100 + $25 = $125.)

Front

What is the formula for calculating the discount amount?

Back

Discount Amount = Original Price x Discount Percentage.

Front

What is the formula for calculating the markup amount?

Back

Markup Amount = Cost Price x Markup Percentage.

Front

How do you express a discount as a percentage?

Back

To express a discount as a percentage, divide the discount amount by the original price and multiply by 100.

Front

How do you express a markup as a percentage?

Back

To express a markup as a percentage, divide the markup amount by the cost price and multiply by 100.