Calculating Total Purchase Prices

Front

What is a markdown?

Back

A markdown is a reduction in the original selling price of a product, often expressed as a percentage.

Front

How do you calculate the sale price after a markdown?

Back

Sale Price = Original Price - (Original Price x Markdown Rate)

Front

What is the formula to find the unit price?

Back

Unit Price = Total Price / Quantity

Front

How do you compare different pricing options to find the best buy?

Back

Calculate the cost per unit for each option and compare them to determine which is the lowest.

Front

What is the total purchase price including tax?

Back

Total Purchase Price = Subtotal + (Subtotal x Tax Rate) where Tax Rate is the sum of state and city tax rates.

Front

If an item costs $200 and has a 10% sales tax, what is the total cost?

Back

Total Cost = $200 + ($200 x 0.10) = $220.

Front

What is the difference between a sale price and a regular price?

Back

The sale price is the price after a markdown, while the regular price is the original price before any discounts.

Front

How do you calculate the markdown amount?

Back

Markdown Amount = Original Price - Sale Price.

Front

If a product is on sale for $150 after a 25% markdown, what was the original price?

Back

Original Price = Sale Price / (1 - Markdown Rate) = $150 / (1 - 0.25) = $200.

Front

What is the importance of rounding in pricing?

Back

Rounding ensures prices are presented in a standard format, making them easier to read and understand.