Markup
and
Discount
NS 1.4 Calculate given
percentages of quantities and
solve problems involving
discounts at sales, interest
earned, and tips.
Objective:-Students will calculate
give percentages and find
discounts, markups, tips, and sales
tax by scoring an 80% proficiency
on a quiz.
Terminology
Cost - The price retailers
pay to a manufacturer
Markup, margin, or gross
profit - The difference between
the cost of bringing the goods
into the store and the selling
price
Selling Price - The price
retailers charge customers
Operating expenses or
overhead - The regular
expenses of doing business
such as rent, wages,
utilities, etc.
Net profit or net income - The profit remaining after
subtracting the cost of bringing the goods into the
store and the operating expenses
Copy these Steps:
Finding Discounts
Finding Markups
 Step 1: Find the amount
of the discount (the
percent)
 Step 2:Turn the percent
into a decimal and
Multiply it by the
original price
 Step 3: Subtract the
discount amount to the
original price.
 Step 1: Find the amount
of the markup (the
percent)
 Step 2: Turn the percent
into a decimal and
Multiply it by the
original price
 Step 3: Add the markup
amount to the original
price.
Markup and Discount
 Markup and Discount are like tax,
commission, and tip questions.
 You can…
1) Change the percent to a decimal and
multiply.
2) Write an equation to find the missing
percent.
3) Write a proportion like percent
problems
Basic Selling Price Formula
Selling price (S) = Cost (C) + Markup (M)
$1,200
Computer
$900 - Price
paid to bring
computer
into store
$300 Dollars to
cover
expenses and
profit
Markup vs. Discount
 Markup
A retail store buys
items at wholesale
prices. To cover
expenses and make a
profit, the sells items
at higher retail
prices. The extra
amount is called the
markup.
 Discount
When an item is on
sale, the store is
selling the item for
less, so this is called
discount.
Discount
You buy a pair of jeans that is 30% off the
original price of $29. What is the sale price of an item?
Ex1:
 Find the amount of
the discount:
30% of $29
0.3 x 29
8.7
Subtract the discount from the original price
29- 8.70 =
$20.30
Markup
Ex: 2 A store that sells skateboards buys them from
a manufacturer at a wholesale price of $57. The store’s
markup is 150% . What is the retail price?
 Find the amount of
the markup( Percent)
and turn into decimal.
Markup = 150% of $57
1.50 x 57
85.50
Add the markup amount to the original price
57.00 + 85.50=
$142.50
Markup
Ex: 3
 Finding the amount of
markup.
 A store buys a shirt at
a wholesale price of
$13.50 and sells the
shirt for $24.95. How
much was it marked
up?
$24.95- $13.50=
$11.45
 Finding the
percent of
markup.
 What is the
percent of markup
for the shirt in the
first problem?
$11.45 is what percent of $13.50?
84.8% or 85%
Markup
1) A store buys a pair of shoes at a
wholesale price of $37.50 and sells
them for $50. What is the amount of
markup?
2) What is the percent of markup for the
pair of shoes in problem 1?
3) Find the cost after markup: $15
movie, 20% markup
Discount
 Find the amount of
discount
 A $36 book is on sale
for $27. What is the
amount of discount?
$9.00
 Find the percent of
discount
 What is the percent
of discount for the
book in the problem
before?
25%
Discount
1)
A $90 coat is on sale for $76.50. What is the
amount of discount?
2)
What is the percent of discount for the coat
in problem 1?
3)
Find the cost after discount: $85 radio,
10% discount.
Shopping Activity
 It is time to shop!
 You have $1000 dollars
to spend, no more!
 You need to shop at least
at 6 stores, where you can
buy at least one item. Be
sure to have at least 2
markups and 2 discounts.
 Find the cost after the
markup or discount.