1. Markdown

2.  % discount.  To find reduced price, subtract.  Original $ - Markdown $ = Reduced $

3.  Ski boots originally priced at $289.99 were marked down 40%. Find the reduced price.  The entire inventory of decorations remaining after Christmas has a retail value of $1836. If they are sold at reduced prices totaling $459, what is the percent markdown?

4.  Men’s and women’s winter gloves are sold at a reduced price of $17.99 after a markdown of 40% from the original price. Find the original price.

5. VOCAB (p 318)  Break-even Point: point at which the reduced price just covers the cost + overhead.  Operating Loss: occurs when the reduced price is less than the break- even point.  Absolute (or Gross) Loss: result of a reduced price that is below the cost of the merchandise alone.

6.  Big Chime Electronics paid $480 for a flat-screen television set. If the operating expenses are 35% of cost and the television is sold for $600, find the amount of the operating loss.  A propane forced-air heater normally selling for $290 is marked down 25%. If the cost of the heater is $220 and the operating expenses are 15% of the cost, find (A) the operating loss and (B) the absolute loss.