3.3 Markup and Markdown

Markup - another name for percent increase To make a profit, stores mark up the prices on items they sell. A sports store buys skateboards from their supplier for $35. They then mark them up 42%. What is the retail price? Vocabulary: Retail price – price sold to public (NEW PRICE) Wholesale price – price purchased from supplier (ORIGINAL PRICE)

= To make a profit, stores mark up the prices on items they sell. A sports store buys skateboards from their supplier for $35. They then mark them up 42%. What is the retail price? Think of what you know: 42% - that is the percent $35 – that is the original price So plug those numbers in. That means you’re going to find the amount that the price will be changed.

= = To make a profit, stores mark up the prices on items they sell. A sports store buys skateboards from their supplier for $35. They then mark them up 42%. What is the retail price? Think of what you know: 42% - that is the percent $35 – that is the original price So plug those numbers in. That means you’re going to find the amount that the price will be changed.

= = To make a profit, stores mark up the prices on items they sell. A sports store buys skateboards from their supplier for $35. They then mark them up 42%. What is the retail price? Cross multiply 100x = (35)(42) x = 14.70 (because we’re dealing with money I put the 0 in the hundredths place)

= = To make a profit, stores mark up the prices on items they sell. A sports store buys skateboards from their supplier for $35. They then mark them up 42%. What is the retail price? x = 14.70 Is this your answer? No – because they ask the retail price – new price. You have the markup (change). So if it was $35 and you marked up $14.70 – the retail price would be $49.70

An example of a price decrease would be a markdown A discount store marks down all of its holiday merchandise by 20% off the regular selling price. Find the discounted price of decorations that regularly sell for $16. = What do you know? 20% = percent $16 = original price

An example of a price decrease would be a markdown A discount store marks down all of its holiday merchandise by 20% off the regular selling price. Find the discounted price of decorations that regularly sell for $16. = 100x = (20)(16) x = $3.20 Final Price = 16 – 3.20 = $12.70

Original Price: $45.00 Markdown 22% Find the amount that the item is marked down. Find the Retail price (price with the markdown amount)

Original Price: $24.00 Markup 44% Find the amount that the item is marked up. Find the Retail price (price with the markup amount)

My new cell phone cost $190.00, but when I signed a 2 year plan I got 20% off. How much did it cost?

Notebooks

Original Price: $89.00 Markdown 33% Find the amount that the item is marked down. Find the Retail price (price with the markdown amount)

Original Price: $150.00 Markup 120% Find the amount that the item is marked up. Find the Retail price (price with the markup amount)

Drew bought a chemistry book for $30 Drew bought a chemistry book for $30. Later that book was marked down by 20%. By how much has the value been decreased? The question asks: How much has the value decreased? Is this the NEW PRICE? Or the CHANGE IN PRICE?

Drew bought a chemistry book for $30 Drew bought a chemistry book for $30. Later that book was marked down by 20%. What was the cost of the book with the discount?

The Game Stop purchased a game for $30 The Game Stop purchased a game for $30. If they mark up the price 45%, what would be the retail price?