1. Markup and Markdown

2. A store buys items at a price and raises that price so they can make a profit. This is called a markup. When stores need to get rid of items or they have a sale, they discount the items. This is called a markdown.

3. Markup
The retail price of an item—the cost after markup— is the cost we see in the stores. To calculate markup— (original amount)(percent as decimal) = markup THEN Original amount + markup = final cost

4. Markdown
A discounted price is the markdown. To calculate markdown- (original amount)(percent as decimal) = markdown THEN Original amount - markdown = final cost

5. We will do this one together…
Furniture and jewelry are two items that are marked up more than other products we buy. Can you think of why that is the case? Mile’s furniture bought a couch from their supplier for $650. They are going to mark it up 200%. What is the retail price for this couch that we, the consumer, would have to pay?

6. We will do this one together…
Wal-Mart put the Halloween yard decorations on sale for 20% off. What would be the discounted price of a haunted house that originally cost $24?

7. We will do this one together…
A pet owner bought a leash at the veterinarian’s office. The leash cost the vet $2.25 to buy from his supplier. The vet marked the price up 45% before selling it to the pet owner. What is the price the pet owner paid before tax?

8. Now you try some...
Coach Ball wanted to buy some new shoes for basketball. The ones he wanted originally cost $120, but they are 30% off. What would be the discounted price of the shoes be before tax?

9. Now you try some...
Daisy has a painting that she realized was worth some money. She bought the painting for $160 and is going to mark it up 125%. What is Daisy going to sell the painting for?

10. Now you try some...
Hibbetts Sports Store buys skateboards from their supplier for $56. What would be the retail price for the skateboards if there has been a 42% markup?