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Lesson 8.3B: Markup and Discount
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Change each percent into a decimal 5.5% 10.24% 29% .1% 1% 50% 5% 0.055 0.1024 0.29 0.001 0.01 0.5 0.05
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Terminology Selling Price - The price retailers charge customers Cost - The price retailers pay to a manufacturer Markup, margin, or gross profit - The difference between the cost of bringing the goods into the store and the selling price Operating expenses or overhead - The regular expenses of doing business such as rent, wages, utilities, etc. Net profit or net income - The profit remaining after subtracting the cost of bringing the goods into the store and the operating expenses
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Terminology How is discount different from mark-up? Use the words “selling price” and “sale price” in your answer. -
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Markup and Discount Markup and Discount are like tax, commission, and tip questions. You can… 1)Change the percent to a decimal and multiply. 2)Write a proportion like percent problems
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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
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Markup vs. Discount Markup A retail store buys items at wholesale prices. To cover expenses and make a profit, the sells items at higher retail prices. The extra amount is called the markup A retail store buys items at wholesale prices. To cover expenses and make a profit, the sells 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.
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Markup Finding the amount of markup. A store buys a shirt at a wholesale price of $13.50 and sells the shirt for at a mark-up of 85%. How much was it marked up? Finding the selling price. How much will the shirt cost the consumer? $11.48 $24.98
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Markup 1) A store buys a pair of shoes at a wholesale price of $37.50 and marks up the price 35%. What is the amount of markup? 2) What is the selling price for the pair of shoes in problem 1? 3) Find the cost after markup: $15 movie, 20% markup $13.13 $50.63 $18.00
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Discount Find the amount of discount A $36 book is on sale for 25% off. What is the amount of discount? Find actual price to the consumer What sale price for the book in the problem before? $9.00 $27
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Discount 1)A $90 coat is on sale for 60% off. What is the amount of discount? 2)What is the sale price for the coat in problem 1? 3)Find the cost after discount: $85 radio, 10% discount. $54 $36 $8.50 discount - $76.50 Total
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Shopping Activity It is time to shop! You have $1000 dollars to spend, no more! You need to shop at least at 6 stores, where you can buy at least one item. Be sure to have at least 2 markups and 2 discounts. Find the cost after the markup or discount.
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