1. Markup
Stores buy items from a wholesaler or distributer and increase the price when they sell the items to consumers. The increase in price provides money for the operation of the store and the salaries of people who work in the store.

2. Calculating markup
Omar's Furniture Store buys a chair at a wholesale price of $151. If the markup rate at Omar's Furniture Store is 75%, what is the markup for the chair?
$113.25

3. Calculating cost after markup
The manager at Stephanie's Furniture Store is trying to figure out how much to charge for a table that just arrived. If the table was bought at a wholesale price of $129 and Stephanie's Furniture Store marks up all furniture by 35%, at what price should the manager sell the table?
$174.15

4. Finding percent markup
Best buy purchases computers from a manufacturer for $50. They sell these computers to the public for $300. What was the percent markup on the computers?
500% markup

5. Commission
Incentive to work because pay is directly related to the amount of work a person does
ex. Sales person and Production workers

6. Commission Car Sales Person earns 9% commission for each car sold
Sold 2 cars
Car 1 - $21,790
Car 2 - $25,650
How much does the
Salesperson earn?
$21,790
+ 25,650
47,440
x _ .09
$4,269.60

7. Base + incentive
Jill works at Best Buy and has a bi-weekly salary of $1,000.
She earns 3% of the merchandise she sells.
She sold $6,000 in merchandise this pay period.
What is Jill’s gross pay?
$1,000 + (.03 x 6000)
$1, = $1,180.00