1. Markups and Markdowns

2. Stores have to buy their merchandise from the factory.
To make a profit, stores sell the merchandise at a price that is higher than the cost they paid.
The amount of increase from the cost to the selling price is called the markup.

3. Markups For example: markup = selling price – cost markup= 28 – 16

4. Markups
You can represent the amount of markup as a percent increase of the original cost.
percent increase = amount of change/original quantity
This percent is called the percent markup.
percent markup = markup/cost

5. Markups For example: percent markup = markup/cost
markup= 12/16 = 3/4 , or 75%
There is a 75% markup on the shirt.

6. Markups
What is the percent markup for each item? Round to the nearest percent.

7. Markups
Airlines usually increase the price of their plane tickets as the day of the flight gets closer. What is the percent markup for the plane ticket below?
Base cost: $310
Selling Price: $550
Concert halls change the price for concert tickets depending on the performer. What is the selling price for the concert ticket below?
Base cost: $20
Percent markup: 90%

8. Markdowns
When a store puts an item on sale, it reduces the selling price of the item.
The amount of decrease from the selling price to the sale price is called the markdown.

9. Markdowns For example: markdown = selling price – sale price

10. Markdowns
You can represent the amount of markdown as a percent decrease of the selling price.
percent decrease = amount of change/original quantity
This percent is called the percent markdown.
percent markdown = markdown/selling price

11. For example:
percent markdown = markdown/selling price
percent markdown = 7/28 = 1/4 , or 25%
There is a 25% markdown on the shirt.

12. Each month at an electronics store, new televisions come in
Each month at an electronics store, new televisions come in. The store manager puts older televisions on sale. What is the percent markdown on the television below?
Selling Price: $250
Sale Price: $200

13. Markups and Markdowns
Relax Yoga Store buys yoga mats for $15 each. The store has a sale the following week. Does the store still make a profit on each mat during the sale? If so, how much of a profit?

14. Relax Yoga Store negotiates to buy even more yoga mats from their seller if he can give them 35% off the original $15. If the seller gets the mats for $8.50, would he still make a profit on each mat with this deal? If so, how much of a profit?

15. HW:
Markups and Discounts worksheet