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MATHEMATICS OF SELLING

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Presentation on theme: "MATHEMATICS OF SELLING"— Presentation transcript:

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.


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