1. Target
I can understand Markups and Discounts

2. 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

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

4. 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.

5. 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

6. 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 $ How much was it marked up?
What is the percent of markup for the shirt?
Markup
Cost
% of Markup =
Markup=Selling Price - Cost =
11.45
13.50 =
$11.45
= 84.8% or 85%

7. 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%

8. Markup Price = Cost + Markup

9. 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%

10. Discount
A $90 coat is on sale for $ 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%

11. Classwork
Packet Mark-ups, Discount & Taxes

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