Math 7 ( Period 4)

Mark Up & Discount 7.6

A retail store buys items at wholesale prices. To cover expenses and make a profit, the store sells the items at high retail prices. The DIFFERENCE between the retail and wholesale prices is called the markup.

 Mark up = Retail price – Wholesale price

 A store buys a shirt at wholesale price of # 13.50 and sells it for $ 24.95. What is the amount of mark up?

Markup = Retail – Wholesale

24.95 – 13.50

$11.45

To find the percent of markup use the wholesale price as the original and the amount of markup as the difference or change! We use the LADYBUG Method…

Percent of markup =

Markup/wholesale price

11.45/13.50

0.85 or

85%

 Often times a store will use a fixed percent of markup. SO If a store bought a piece of jewelry fat a wholesale price of $ 180 and the percent of mark up was 150% what is the retail price?

First find the mark up

180(150%) = 180(1.50) = 270

$270 is the mark up. YOU MUST add that to the wholesale price

270 + 180 = $450

When an item is on sale, the difference between the regular price and the sale price is called the discount.

Discount = Regular price –sale price

The percent of discount is very similar to the percent of markup!

USE THE LADYBUG METHOD

$36book on sale for $ 27

Find the amount of discount

Find the percent of discount

36 – 27 = 9

9/36 = ¼  = 25%