1. Markup & Discount
Section 5-7

2. Words to know… Markup--increase in a price
Store’s Cost --how much the store pays for an item
Selling Price --markup + store’s cost

3. Markup #1 Store’s Cost: $200 Markup Rate: 15% Markup = ?
What is the selling price? $200 + $30
= $230

4. Markup #2 Store’s Cost: $35 Markup Rate: 25% Markup = ?
What is the selling price? $35 + $8.75
= $43.75

5. Cost of clothing
Sandy’s Clothing Shop has a 45% markup on dresses. How much will the shop charge for a dress that cost the shop $48?
Markup = (48)(0.45)
Markup = $21.60
What is the selling price? $48 + $21.60
= $69.60

6. Words to know… Discount--decrease in a price
Sale Price --selling price - discount

7. Discount #1 Selling Price: $45 Discount Rate: 30% Discount = ?
What is the sale price? $45 - $13.50
= $31.50

8. Discount #2 Selling Price: $300 Discount Rate: 25% Discount = ?
What is the sale price? $300 - $75
= $225

9. Price of speakers
The audio store is having a 25% off sale. What will be the sale price on a pair of speakers that normally sell for $280?
Discount = (280)(0.25)
Discount = $70
What is the sale price? $280 - $70
= $210