chapter 8 - selling

7/23/2019 Chapter 8 - Selling

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CHAPTER 8:

SELLING



Markup

• Find the cost, markup or selling price

when any two of the three are known.

• Find the percent o markup based on the

cost when the cost and selling price areknown.

• Find the selling price when the cost and

percent of markup based on the cost areknown.



Markup in General

In order for a person in a business that sellsmerchandise to make a profit, he or she mustsell the merchandise at a higher price than what

he or she paid for it.



Markup on Cost

When the markup is a percent of the cost, thecost becomes the base or the 100%. upposean item had !0% markup on cost, then theformula would be "

Markup ! Rate " Cost

Selling price ! Cost # Markup

1!0% # 100% $ !0%



E"ample

Find the markup and selling price on a mailbothat cost &'( if there is a (0% markup on cost.

Find the markup ")arkup# *ate +ost

Find the selling price "elling price# +ost $ )arkup



Tr$ T%is

1. If an indooroutdoor -acuum costs &/ andthere is a !% markup on cost, find theamount of the markup and the selling price.

'. If a hea-y duty stapler costs &' and there isa '/% markup on cost, find the amount of

the markup and the selling price.



E"ample

If a 23 nightlight costs &1/ and the sellingprice is &'/, find the markup and the rate basedon cost.

elling 4rice # +ost $ )arkup

*ate # )arkup

+ost



Tr$ T%is

1. If the markup on a label maker is &15 andthe markup rate is 0% on cost, find the costand the selling price of the label maker.

'. If a notebook computer has a markup of&00 and the markup rate is !0% on cost,find the cost and selling price of thecomputer.



Markup on Selling Price

When markup is based on the selling price, theselling price becomes the base or 100%, foreample, if there is a '/% markup on the sellingprice, the formula looks like this"

Selling price ! Cost # Markup

100% # /% $ '/%



E"ample

6n air purifier sells for &1/0. If there is a (0%markup on the selling price, find the cost andthe amount of markup.

)arkup # *ate elling price

+ost # elling price 7 )arkup



E"ample

1. If the markup on a scrapbook kit is &! andthe markup rate is 0% of the selling price,find the selling price and the cost ofscrapbook.

'. 6n oak 8ewelry chest costs &/! and has a

markup &1!. Find the rate of the markup onthe selling price.



Markup Con&ersions

9here may be times when a retailer needs tocon-ert the markup from a % markup on cost to

a % markup on selling price.



Markup Con&ersions

We use two formulas to con-ert % )arkup on +ost and% )arkup on elling 4rice.

' Markup on Selling Price ! ' Markup on Cost( # ' Markup on Cost

' Markup on Cost ! ' Markup on Selling Price( ) ' Markup on Selling Price



Tr$ T%is

If the markup rate on cost is 1/%, find thee:ui-alent markup rate on the selling price.

% )arkup on elling 4rice # % )arkup on +ost1 $ % )arkup on +ost



Tr$ T%is

If the markup rate on the selling price is '0%,find the e:ui-alent markup rate on the cost.

+onsider an item is sells for &50;..

% )arkup on +ost # % )arkup on elling 4rice

1 7 % )arkup on elling 4rice



Tr$ T%is

1. If the selling price of an item is &1'0 and themark up rate on cost is (0%. Find themarkup amount

'. 9he cost of an item is &(0. If there is a /0%markup on the selling price, find the amountof the markup.



THE EN*

chapter 8 - selling

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