Lesson 3: Mark-Up, Mark-On, and Mark-Down

Question 1

refers to the number that represents a whole or 100

Answer 1

base

Question 2

the base is usually preceded by the word

Answer 2

“of”

Question 3

refers to that number which
represents a percent of another number.

Answer 3

rate

Question 4

rate can be expressed as

Answer 4

decimal, fraction, and percent

Question 5

refers to that number that represents part of a whole.

Answer 5

portion

Question 6

portion is usually preceded by the word

Answer 6

“is”

Question 7

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.

Answer 7

cost price

Question 8

Baking ingredients for cookies and raw materials in
creating bracelets

Answer 8

cost price

Question 9

the price spent relative to the production and sale of commodity.

Answer 9

operating cost

Question 10

the cost of selling cookies while considering the fare in buying
the ingredients, the rent for the store, the packaging, and the bills.

Answer 10

operating cost

Question 11

the money earned after the cost price and the operating costs accounted
for after the sale of a commodity.

Answer 11

profit

Question 12

It is the difference between the selling price
and the sum of all the total costs

Answer 12

profit

Question 13

the sum of the total costs include the

Answer 13

cost price and operating cost

Question 14

the price in which the commodity or good is sold per unit.

Answer 14

selling price

Question 15

selling price formula

Answer 15

selling price = cost price + operating cost + profit (S=C+E+P)

Question 16

mark-up is sometimes referred to as the

Answer 16

margin or gross profit

Question 17

when does mark-on usually occur

Answer 17

Christmas holidays and valentine’s day, or calamities

Question 18

a reduction in the selling price OR the lowering of the price of your product

Answer 18

mark-down

Question 19

a mark-down may be

Answer 19

temporary or permanent

Question 20

a reduction in the selling price of an item to encourage consumers
to increase their demand on a particular product.

Answer 20

temporary mark-down

Question 21

implemented by companies to remove a “poor-sale” product from
their inventory.

Answer 21

permanent mark-down

Question 22

the purpose of a markdown

Answer 22

generate sales or clear inventory

Question 23

formula for mark-on

Answer 23

mark-on = new selling price - old selling price

Question 24

It is the difference between the selling price (S) and the cost price (C)

Answer 24

mark-up

Question 25

mark up formulas

Answer 25

mark-up = operating expenses + profit (MU = E+P)

OR

mark-up = selling price - cost (MU=S-C)

Question 26

mark-up rate based on cost formula

Answer 26

Mc = Mark-Up/Cost (Mc = MU/C)

Question 27

triangle for mark-up, mark-up rate based on cost, and cost

Answer 27

MU
C / Mc

Question 28

Mark-up Based on Selling Price formula

Answer 28

Ms = Mark-up/Selling Price

Ms = MU/S

Question 29

triangle for mark-up, mark-up rate based on selling price, and cost

Answer 29

MU
C / Ms

Question 30

mark-on formula

Answer 30

mark-on = new selling price - old selling price (MO=NP-S)

Question 31

mark-down formula

Answer 31

mark-down = original price - selling price (MD=OP-S)

Question 32

mark-down rate formula

Answer 32

mark-down rate = mark-down/original price (Md = MD/OP)