1. MATHEMATICS OF SELLING
CHAPTER 8
MATHEMATICS OF SELLING

2. Section 8.1
Markup on COST

3. Vocab (p 300)
Cost: amount paid to supplier after any discounts are taken.
Selling price: price merchandise is offered for sale to the public.
Markup, margin, or gross profit: difference between cost and selling price.

4. Operating expenses, or overhead: includes all expenses such as wages of employees, rent, utilities, insurance, advertising…
Net profit (net earnings): the amount left for the business after operating expenses and cost of goods have been paid.

5. Basic Formula for Amount of Markup:
Selling price = Cost+Markup
The cost is $ and the markup is $ Find the selling price.

6. Formula for % Markup based on COST
%Markup = Amt of Markup on cost Cost
The cost is $ and the selling price is $ Find: A) the AMOUNT of Markup and
B) the % Markup on Cost.

7. A retail buyer purchased some pedometers at a cost of $12 and will sell them for $16. What is the percent markup based on cost?

8. A 6-foot billiard table has a markup of $84, which is 35% based on cost. Find the cost and the selling price.
The cost of some women’s slippers is $45. If the markup is 22% of cost, find the markup and the selling price.

9. Target sells a 2-pack of cotton socks for $4. 99
Target sells a 2-pack of cotton socks for $ If the markup is 30% on cost, how much can they afford to pay for the socks (cost)?
The selling price of a telescope is $ If the markup is 40% based on cost, find the cost and the markup.