MARK UP RATE it can be expressed based on cost or it can be expressed on selling price .

The Following Variables will be in our mathematical treatment of Mark Up :

SP=Selling Price

C=Cost

M=Markup

Mc=Markup on Cost

Msp=Mark up on selling price

MR=Mark up rate

MRc=Mark up rate on Cost

MRsp=Markup rate on selling price

Example :

A. SELLING PRICE

* A mathematics book cost the store manager Php 161 and he marked it up another Php 89 . What was the selling price of the book?

SOLUTION :

Given : C=Php161 M=Php89

SP=C+M

=161+89 =250

Thus,the selling price of the mathematics book is Php250

B.MARKUP VALUE

* RFS Sports Inc. sells home-gymnasium package for Php175000 and maintains a markup of 37% on selling price . Find the mark up value .

SOLUTION :

Given : SP = Php175000 MRsp=37%=0.37

Msp = MRsp x SP

=(0.37)(175000)=64750

Thus, the markup value is Php64750

C. Cost

*The washing machine had a selling price of Php4,792. It had been marked up Php1,248. What bis its cost?

SOLUTION :

Given : SP= Php4,792 M=Php1,248

C=SP-M=4792-1248=3544

Thus, the cost is Php 3544

D. Markup Rate

* A Laser printer costing Php8750 is sold for Php12250 . Find the markup rate based on cost ?

SOLUTION :

Given : C=Php8,750 SP=Php12,250

MRc=Mc/C=SP-C/C

= 12,250-8,750/8750 =0.40 or 40%

Cost is the price a a merchandising Business or retailer pays for a product .

Selling Price or retail price , is the price for which a merchandising business or retailer sells a product to a customer .

The difference between selling price and cost is called MARK UP ,

MARK UP is added to cost to cover the operating expenses and provide a profit to the owners .

**Mathematics of Selling and Buying**

E. Equivalent Markup Percentages

% C Markup =% Selling Price Markup /

(100% -%Selling Price Markup )

% SP Markup % Cost Markup / (100%+% Cost Markup

* If the markup on an item is 25% of price , what percent is the mark up on cost ?

SOLUTION :

Given : % Cost Markup= 25%

% C Markup =%Selling Price Markup / (100% - % Selling price Markup

= 25% / (100%-25%)=25% / 75% = 0.25 / 0.75 = 0.3333

Thus, the percent markup on cost is 0.3333 or 33 1/2%

Markdown

markdown is a price production from the original selling price of merchandise.the reduction on regular price of product may have been brought by damaged goods,discounted items,old stocks and other events

Markdown = Regular Price x Markdown Rate

Sale Price = Regular Price - Mardown

Markdown Rate = MarkDown / Regular Price

Regular Price = Sale Price / 100%-Mardown Rate

* What are the Markdown and the sale price on an antique jar that has a regular price of Php 35800 and is on sale for 26% off the regular price ?

SOLUTION:

Given : Regular Price Php 35800 MarkDown Rate : 26%=0.26

Markdown = Regular Price x Makdown Rate

= 35800(0.26)

= 9308

Sale Price : Regula Price x Markdown

=35800-9308

= 26,492

Thus, the markdown is Php 9308 and the sale is Php 26492

Markdown cancellation

Trade Discount

Trade discount are reduction from list price , it is typically offered between manufacturer and wholesaler or between wholesaler and retailer

Tade discount = List price x Trade Discount Rate

Trade Discount Rate = Trade Discount /List Price

List Price = Invoice Price / Rate of Invoice Price

Net Price = List Price - Trade Discount

* Find the net price of shirt listed at Php 925 , The Retailer is Granted a 20% trade discount 925?

SOLUTION:

Given : List Price = Php925 Trade Discount = 20%

trade discount = list price x trade discount rate

= (925)(0.20) = 185

net price = list price - trade discount

= 925 - 185 = 740

Thus. the net price is Php740.

Cash Discount = Invoice x Cash Discount Rate

Net Amount = Invoice - Cash Discount

Cash Discount Rate = Cash Discount / Invoice

* The Full Amount of the purchase is Php 530. If a cash discount of 10% is allowed , Find the amount of the cash discount and the net amount to be paid?

SOLUTION:

Given :

Purchase Price = Php 530 Rate of Discount = 0.10%=.10

Cash Discount =Purchase Price x Cash Discount Rate

=(530)(0.10)= Php 53

Net Amount = Full Amount - Cash Discount

= 530-53=Php477

Thus, The cash discount is Php 53 and the amount to be paid is Php 477

Cash Discount

Is a incentive that seller offers in return for paying a bill owed before the scheduled due date . The seller will generally reduce the amount owed by the buyer by a small percentage or a set of a peso amount .

Retail Discount

the concept of retail discount are the same with trade discount .

Retail Discount = List Price x Discount

Net price = list price - retail discount

Discount rate = Retail discount / List price

List price = Net price / 100%- Discount rate

*sofia bought a computer set at a computer shop. the list price of the computer is Php 50,000 with 12% retail discount . how much did she actually pay

Solution

Given = list price Php 50,000 Discount rate = 12% = 0.12

Retail discount = list price x discount rate

=(50,000)(0.12) = Php 6,000

Net price = List price - retail dicount

= 50,000 - 6,000 = 44,000

Thus,sofia paid Php 44,000 for the computer set