chapter 8 - selling
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7/23/2019 Chapter 8 - Selling
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CHAPTER 8:
SELLING
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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.
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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.
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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%
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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
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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.
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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
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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.
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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% # /% $ '/%
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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
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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.
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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.
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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
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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
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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
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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.
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THE EN*
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