Discounts + Markups

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 selling price using markup?

Back

Selling Price = Cost Price + (Markup Rate × Cost Price)

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

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

Front

If a couch costs $125 and has a markup of 40%, what is the selling price?

Back

Selling Price = $125 + (0.40 × $125) = $175

Front

If sunglasses are originally priced at $80 and are on a 25% discount, what is the sale price?

Back

Sale Price = $80 - (0.25 × $80) = $60

Front

What is the formula to find the markup rate?

Back

Markup Rate = (Selling Price - Cost Price) / Cost Price × 100%.

Front

If a ring costs $360 and is sold for $630, what is the markup rate?

Back

Markup Rate = (($630 - $360) / $360) × 100% = 75%.

Front

What is the original price of an item if it is sold for $490 after a 30% discount?

Back

Original Price = Sale Price / (1 - Discount Rate) = $490 / (1 - 0.30) = $700.

Front

How do you calculate a tip based on a meal price?

Back

Tip = Meal Price × Tip Percentage.