Calculating Percents
McKenzie Penix
Taxes
Tips
Mark Up
Markup is the difference between the cost of a good or service and its selling price. A markup is added onto the total cost incurred by the producer of a good or service in order to create a profit. The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product.
The markup is 40% of the $25 cost, so the markup is:
(0.40)(25) = 10
Then the selling price, being the cost plus markup, is:
25 + 10 = 35
The item sold for $35.
Discount
To sell or offer for sale at a reduced price
discounting all merchandise To reduce in quantity or value discount a price. The cost of the pants was originally $20.00. To deduct or subtract from a cost or price an example would be the store discounted 30 percent off the price of the sweat pants. The ending price was $14.00.