Target I can understand Markups and Discounts

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

Markup and Discount Markup and Discount are like tax, commission, and tip questions.

Markup vs. Discount Markup A retail store buys items at wholesale prices. To cover expenses and make a profit, they sell 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.

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 $11.45 Finding the amount of markup. Finding the percent of markup. A store buys a shirt at a wholesale price of $13.50 and sells the shirt for $24.95. How much was it marked up? What is the percent of markup for the shirt? Markup Cost % of Markup = Markup=Selling Price - Cost 24.94-13.50= 11.45 13.50 = $11.45 = 84.8% or 85%

Markup 1) A store buys a pair of shoes at a wholesale price of $37.50 and sells them for $50. What is the amount of markup? Markup=Selling Price - Cost Markup = $50 – $37.50 = $12.50 2) What is the percent of markup for the pair of shoes? Markup Cost $12.50 $37.50 % of Markup = = =0.33…= 33.33%

Markup Price = Cost + Markup

Discount A $36 book is on sale for $27. What is the amount of discount? What is the percent of discount for the book? Discount = Markup Price – Sale Price Discount = $36 - $27=$9 $9.00 Discount Markup Price % Discount = 9 36 % Discount = = 0.25=25%

Discount A $90 coat is on sale for $76.50. What is the amount of discount? What is the percent of discount for the coat? Discount = Markup Price – Sale Price Discount = $90 - $76.50 = $13.50 Discount Markup Price % Discount = 13.50 90 % Discount = = 0.15=15%

Classwork Packet Mark-ups, Discount & Taxes

Exit Ticket Where am I with my IXL homework? A. I’m Behind B. I’m almost done C. I’m done