Calculating Discounts and Markups

Front

What is a discount?

Back

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

Front

How do you calculate the discount amount?

Back

Discount Amount = Original Price × Discount Rate.

Front

What is the formula to find the selling price after a discount?

Back

Selling Price = Original Price - Discount Amount.

Front

What is a markup?

Back

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

Front

How do you calculate the markup amount?

Back

Markup Amount = Cost Price × Markup Rate.

Front

What is the formula to find the selling price after a markup?

Back

Selling Price = Cost Price + Markup Amount.

Front

If an item is marked down by 25%, what does that mean?

Back

It means the item is being sold for 75% of its original price.

Front

How do you find the discount rate?

Back

Discount Rate = (Discount Amount / Original Price) × 100%.

Front

If an item sells for $63 with a 40% markup, what is the cost price?

Back

Cost Price = Selling Price / (1 + Markup Rate) = $63 / 1.4 = $45.

Front

What is the relationship between cost price, selling price, and markup?

Back

Selling Price = Cost Price + Markup.