WP3a
Practice - Markups, Markdowns & Discounts
TRY TO ANSWER IN TWO AND A HALF MINUTES.
QUESTIONS
QUESTIONS
1. A hardware store has a sale with 25% off every item in the store. You buy a saw listed at $40 and a clamp listed at $8. How much do you pay for the clamp?
2. A hardware store can sell a compressor for $240. It costs $150. What is the percentage markup?
3. A computer is regularly priced at $400. During a special sale, the price is reduced to $320. What is the percentage decrease (markdown or discount) of the computer during the sale?
4. You buy a game on sale for $36. The original price was $48. How much was the markdown or discount?
5. Business is brisk, so the owner of your store decides to mark up all of your prices by 30%. How much will an item which now carries a $7.98 price tag sell for after the markup? Round up to the nearest penny.
6. You can buy 6 dresses at 15% off the usual price of $x. Write an equation showing how much you would save if you bought the dresses.
7. As a store manager, you buy a shirt for $10 and mark its price up 70%. Would the selling price be (less than, equal to, or greater than) $10.70?
ANSWERS
1. Discount. $8 x (1-.25) = $8 x .75 = $6. Notice that the saw's price is not relevant.
2. Markup = (sales price/cost) - 1. Sales price/cost = $240 / $150 = 1.6. Markup = 1.6 minus 1 = 0.60, or 60%.
3. The sale price is 320/400 of the original price, or 75%. Therefore the markdown is 1 - 75%, or 25%.
4. The price cut was $48 - $36, or $12. So the discount was $12/$48 = .25 or 25 %.
5. The markup is $7.98 x 30%, or $7.98 x .30 = $2.394 which rounds to $2.39. The new price will be $7.98 + $2.39 = $10.37.
6. You would save $x times .15 on each dress. So the total savings would be 6($x times .15) = .75 times $x.
7. The selling price would be $10 (1 + .70) = $10 times 1.70 = $17.00. The selling price would be greater than $10.70.