Activity # 1: Explain how markup is calculated for your company.
Basic Markup Calculations Markup is the amount of profit that a business makes off a product after the cost of producing the product is subtracted from the total cost. – Markup Equation: Cost (C) + Markup (MU) = Real Price (RP)
Activity # 2 Identify and describe the various discounts (markdowns) offered to your employees and customers.
Discounts Employee Discounts: These are discounts given to the employee in order to encourage the employee to spend money in the store. Discounts from Manufacturers and Distributors Include: – Cash Discounts – Trade Discounts – Quantity Discounts – Promotional Discounts – Seasonal Discounts