Lesson 8.3B: Markup and Discount

Change each percent into a decimal  5.5%  10.24%  29% .1%  1%  50%  5%    0.29   0.01  0.5  0.05

Terminology Selling Price - The price retailers charge customers Cost - The price retailers pay to a manufacturer Markup, margin, or gross profit - The difference between the cost of bringing the goods into the store and the selling price Operating expenses or overhead - The regular expenses of doing business such as rent, wages, utilities, etc. Net profit or net income - The profit remaining after subtracting the cost of bringing the goods into the store and the operating expenses

Terminology How is discount different from mark-up? Use the words “selling price” and “sale price” in your answer. -

Markup and Discount  Markup and Discount are like tax, commission, and tip questions.  You can… 1)Change the percent to a decimal and multiply. 2)Write a proportion like percent problems

Basic Selling Price Formula Selling price (S) = Cost (C) + Markup (M) $1,200 Computer $900 - Price paid to bring computer into store $300 - Dollars to cover expenses and profit

Markup vs. Discount  Markup A retail store buys items at wholesale prices. To cover expenses and make a profit, the sells items at higher retail prices. The extra amount is called the markup A retail store buys items at wholesale prices. To cover expenses and make a profit, the sells items at higher retail prices. The extra amount is called the markup.  Discount When an item is on sale, the store is selling the item for less, so this is called discount.

Markup  Finding the amount of markup.  A store buys a shirt at a wholesale price of $13.50 and sells the shirt for at a mark-up of 85%. How much was it marked up?  Finding the selling price.  How much will the shirt cost the consumer? $11.48 $24.98

Markup 1) A store buys a pair of shoes at a wholesale price of $37.50 and marks up the price 35%. What is the amount of markup? 2) What is the selling price for the pair of shoes in problem 1? 3) Find the cost after markup: $15 movie, 20% markup $13.13 $50.63 $18.00

Discount  Find the amount of discount  A $36 book is on sale for 25% off. What is the amount of discount?  Find actual price to the consumer  What sale price for the book in the problem before? $9.00 $27

Discount 1)A $90 coat is on sale for 60% off. What is the amount of discount? 2)What is the sale price for the coat in problem 1? 3)Find the cost after discount: $85 radio, 10% discount. $54 $36 $8.50 discount - $76.50 Total

Shopping Activity  It is time to shop!  You have $1000 dollars to spend, no more!  You need to shop at least at 6 stores, where you can buy at least one item. Be sure to have at least 2 markups and 2 discounts.  Find the cost after the markup or discount.