Calculating Markups and Markdowns
12th Grade · Math · 45 min
Lesson Preview
Learning Objective
I can calculate the final price of an item after percent markups and markdowns.
- 1
Markup is the difference between the selling price and the cost of an item, calculated as Selling Price – Cost.
- 2
The rate of markup based on cost (RC) is calculated as Markup divided by Cost, while the rate of markup based on selling price (RS) is calculated as Markup divided by Selling Price.
- 3
If an item costs $70 and the rate of markup based on selling price is 60%, the selling price can be calculated using the formula S = Cost + Markup, resulting in a selling price of $175 and a markup of $105.
