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Mathematics of Sellin and Buying

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John Michael Gatchalian

on 9 March 2014

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Transcript of Mathematics of Sellin and Buying

The MARK UP RATE Can be expressed as a percent ; the percent mark up is called the MARK UP RATE ,

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
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