C2.Mod 1 Topic 3 Markup and Discount

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Discount Percentage × Original Price)

Front

If a product costs $100 and has a 20% discount, what is the sale price?

Back

Sale Price = $100 - (0.20 × $100) = $80.

Front

What is markup?

Back

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

Front

How do you calculate the selling price using markup?

Back

Selling Price = Cost Price + (Markup Percentage × Cost Price) or Selling Price = Cost Price × (1 + Markup Percentage)

Front

If a video game costs $40 and has a 50% markup, what is the selling price?

Back

Selling Price = $40 + (0.50 × $40) = $60.

Front

What is the formula to find the discount amount?

Back

Discount Amount = Original Price × Discount Percentage.

Front

If a jacket originally costs $80 and is on sale for 25% off, what is the discount amount?

Back

Discount Amount = $80 × 0.25 = $20.

Front

What is the difference between markup and discount?

Back

Markup increases the price of an item, while a discount decreases the price.

Front

If a store buys a shirt for $20 and marks it up by 30%, what is the selling price?

Back

Selling Price = $20 × (1 + 0.30) = $26.