The document discusses calculating mark-ups, cost of sales, and selling prices. It provides examples of how to calculate the selling price given the cost price and mark-up percentage. It also shows how to calculate the cost price when given the selling price and mark-up percentage. The examples demonstrate calculating a 100% mark-up on an iPod sold for double its cost price and a 50% mark-up on an Xbox sold for 50% above its cost price. It also explains how to calculate the cost price of items if the selling price and mark-up percentage are known, such as NBA jerseys with a 100% mark-up or football boots with a 50% mark-up.

1. 11.2A
MARK-UPS, COST OF
SALES AND SELLING
PRICE

2. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 When recording sales of stock, you may need to calculate the Mark-Up
of the stock…
Mark-Up
• The amount added to the cost price of stock to determine its Selling Price.
• Represents the Gross Profit on each sale.
Cost of Sale Gross ProfitRevenue - =$50 $150$200
Mark-Up Selling PriceCost Price + =$150 $200$50
11.2A MARK-UPS, COST OF SALES
AND SELLING PRICE

3. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 Example: a firm sold an iPod Nano costing $100 for a 100% Mark-Up
1 + Mark-UpSelling Price Cost Price x=
1 + 1.0$200 $100 x= 2.0
11.2A MARK-UPS, COST OF SALES
AND SELLING PRICE

4. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 Example: a retailer adds a 50% Mark-Up to Xbox’s which have a cost
price of $100
1 + Mark-UpSelling Price Cost Price x=
1 + 0.5$150 $100 x= 1.5
11.2A MARK-UPS, COST OF SALES
AND SELLING PRICE

5. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 Other times you may be given the Selling Price and the Mark-Up and be
asked to calculate the Cost of Sale…
 Example: Rebel Sport sells NBA Jerseys for $100 at a 100% Mark-Up
1 + Mark-UpSelling PriceCost Price = /
1 + 1.0$100$50 = / 2.0
11.2A MARK-UPS, COST OF SALES
AND SELLING PRICE

6. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 Example: Rebel Sport sells football boots for $150 at a 50% Mark-Up
1 + Mark-UpSelling PriceCost Price = /
1 + 0.5$150$100 = / 1.5
11.2A MARK-UPS, COST OF SALES
AND SELLING PRICE

7. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
TASK
In-class Homework
SQ11 X