Percent Markup and Discount

Front

What is percent markup?

Back

Percent markup is the percentage increase applied to the cost price of an item to determine its selling price.

Front

How do you calculate the selling price using percent markup?

Back

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

Front

What is percent discount?

Back

Percent discount is the percentage reduction applied to the original price of an item to determine its sale price.

Front

How do you calculate the sale price using percent discount?

Back

Sale Price = Original Price - (Original Price × Percent Discount) or Sale Price = Original Price × (1 - Percent Discount)

Front

If a product is marked down by 15% and the sale price is $127.46, how do you find the original price?

Back

Original Price = Sale Price / (1 - Percent Discount) = 127.46 / (1 - 0.15) = 149.95

Front

What is the formula to calculate sales tax?

Back

Sales Tax = Price × Sales Tax Rate

Front

How do you calculate total cost including sales tax?

Back

Total Cost = Price + Sales Tax = Price + (Price × Sales Tax Rate)

Front

What is gratuity?

Back

Gratuity is a sum of money given to service workers for their service, often calculated as a percentage of the total bill.

Front

How do you calculate gratuity?

Back

Gratuity = Total Bill × Gratuity Rate

Front

If a meal costs $20 and there is a 9% sales tax, how do you find the total cost?

Back

Total Cost = Meal Price + (Meal Price × Sales Tax Rate) = 20 + (20 × 0.09) = 21.80