The document discusses terminology related to markups and discounts in retail, including selling price, cost, markup, operating expenses, and net profit. It then provides steps for calculating markups and discounts by turning the percentage into a decimal and multiplying or subtracting it from the original price. Several examples are provided to demonstrate calculating markups, discounts, and determining the percentage of markups and discounts.

1. Markup and Discount

2. Terminology
Selling Price - The price
retailers charge customers
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
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

3. Copy these Steps:
Finding Markups
 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.
Finding Discounts
 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.

5. 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

6. 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.

7. Ex1: You buy a pair of jeans that is 30% off the
original price of ₱ 29. What is the sale price of an item?
 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
Discount

8. 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

9. Markup
 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?
 Finding the
percent of
markup.
 What is the
percent of markup
for the shirt in the
first problem?
₱ 11.45 84.8% or 85%
₱ 24.95- ₱ 13.50=
Ex: 3
₱ 11.45 is what percent of ₱ 13.50?

10. 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

11. Discount
 Find the amount of
discount
 A ₱ 36 book is on
sale for ₱ 27. What
is the amount of
discount?
 Find the percent of
discount
 What is the percent
of discount for the
book in the problem
before?
₱ 9.00 25%

12. 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.

13. 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.