1. BUSINESS MATHEMATICS
&
STATISTICS

2. Solve merchandising pricing problems involving markup and markdown
LECTURE 13
Review Lecture 12
Solve merchandising pricing problems involving markup and markdown

3. A golf shop pays its wholesaler
Markup
A golf shop pays its wholesaler
2 400 Rs.
for a certain club,
and then sells it for
4,500 Rs.
What is the markup rate?

4. Markup First, calculate the markup in absolute terms:
4500 – 2400 = 2100
Then find the relative markup
over the original price,
or the markup rate:
(2100) is (some percent) of (2400),
or:
2100 = (x)(2400)

5. Markup ...so the relative markup over the original price is:
2100/2400 = x = 0.875
Since x stands for a percentage,
remember to convert
this decimal value to a percent.
The markup rate is 87.5%.

6. Markup

7. A computer software retailer
Markup
A computer software retailer
used a markup rate of 40%.
Find the selling price
of a computer game
that cost the retailer
Rs. 1,500.

8. Markup The markup is 40% of the cost, so the markup is:
(0.40)(1,500) = 600
Then the selling price, being the cost plus markup, is:
1, = 2,100
The item sold for 2,100.

10. Markdown An item originally priced at 3,300 Rs. is marked 25% off.
  What is the sale price?
First, find the markdown. 

11. Markdown
  First, find the markdown.  The markdown is 25% of the original value, so:
x = (0.25)(3300) = 825
Then calculate the sale price, by subtracting the markdown from the original price: 
3,300 – 825 = 2,475
The sale price is 2,475 Rs..

13. Discount
The price of office equipment is The manufacturer offers a 30% trade discount Find the net price and the trade discount amount.

14. Discount Net Price = L(1 – d) = 3000(1 – .3) = 3000(.7) = 2100 Rs.
Amount of discount = dL
= .3* = 900 Rs.

16. BUSINESS MATHEMATICS
&
STATISTICS