Lesson 3: Mark-Up, Mark-On, and Mark-Down Flashcards
refers to the number that represents a whole or 100
base
the base is usually preceded by the word
“of”
refers to that number which
represents a percent of another number.
rate
rate can be expressed as
decimal, fraction, and percent
refers to that number that represents part of a whole.
portion
portion is usually preceded by the word
“is”
the price that a company or store has to pay for the goods it is going
to sell or the price that has to be spent to produce goods or services before
any profit is added.
cost price
Baking ingredients for cookies and raw materials in
creating bracelets
cost price
the price spent relative to the production and sale of commodity.
operating cost
the cost of selling cookies while considering the fare in buying
the ingredients, the rent for the store, the packaging, and the bills.
operating cost
the money earned after the cost price and the operating costs accounted
for after the sale of a commodity.
profit
It is the difference between the selling price
and the sum of all the total costs
profit
the sum of the total costs include the
cost price and operating cost
the price in which the commodity or good is sold per unit.
selling price
selling price formula
selling price = cost price + operating cost + profit (S=C+E+P)
mark-up is sometimes referred to as the
margin or gross profit
when does mark-on usually occur
Christmas holidays and valentine’s day, or calamities
a reduction in the selling price OR the lowering of the price of your product
mark-down
a mark-down may be
temporary or permanent
a reduction in the selling price of an item to encourage consumers
to increase their demand on a particular product.
temporary mark-down
implemented by companies to remove a “poor-sale” product from
their inventory.
permanent mark-down
the purpose of a markdown
generate sales or clear inventory
formula for mark-on
mark-on = new selling price - old selling price
It is the difference between the selling price (S) and the cost price (C)
mark-up
mark up formulas
mark-up = operating expenses + profit (MU = E+P)
OR
mark-up = selling price - cost (MU=S-C)
mark-up rate based on cost formula
Mc = Mark-Up/Cost (Mc = MU/C)
triangle for mark-up, mark-up rate based on cost, and cost
MU
C / Mc
Mark-up Based on Selling Price formula
Ms = Mark-up/Selling Price
Ms = MU/S
triangle for mark-up, mark-up rate based on selling price, and cost
MU
C / Ms
mark-on formula
mark-on = new selling price - old selling price (MO=NP-S)
mark-down formula
mark-down = original price - selling price (MD=OP-S)
mark-down rate formula
mark-down rate = mark-down/original price (Md = MD/OP)
