Mark-ups, Tax and Discounts

Front

What is a markup?

Back

A markup is the amount added to the cost price of a product to determine its selling price. It is usually expressed as a percentage of the cost price.

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Regular Price - (Regular Price x Discount Percentage).

Front

What is a discount?

Back

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

Front

How do you calculate the original price after a discount?

Back

Original Price = Sale Price / (1 - Discount Percentage).

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 sales tax?

Back

Sales Tax = Sale Price x Sales Tax Rate.

Front

What is the formula for calculating the total price including tax?

Back

Total Price = Sale Price + Sales Tax.

Front

If a product costs $50 and has a markup of 20%, what is the selling price?

Back

Selling Price = Cost Price + (Cost Price x Markup Percentage) = $50 + ($50 x 0.20) = $60.

Front

If a $200 item is on sale for 15% off, what is the sale price?

Back

Sale Price = Regular Price - (Regular Price x Discount Percentage) = $200 - ($200 x 0.15) = $170.

Front

What is the difference between a discount and a markdown?

Back

A discount is a temporary reduction in price, while a markdown is a permanent reduction in the original price.