Markup Mark on and Markdown : Grade 11 Business Mathematics

Summary

In this business mathematics class led by Teacher Andy Guzman, the focus is on markup, marcon, and markdown. Key concepts such as cost, retail price, and markup are explained, including their formulas and applications. The class covers calculating retail price, percent markup, and gross profit margin, using examples like shirts and toys to illustrate. Additionally, markdowns and their impact on sales prices are discussed, along with the concept of trade discounts. The video offers practical problems to demonstrate the real-world application of these concepts in business settings.

Takeaways

• 💼 The cost is the amount spent by a person or group to start a business.
• 🏬 Retail price is the price at which goods are sold in the market.
• 📈 Markup is the additional amount added to the cost to achieve profit.
• 🔢 The retail price formula is: Retail Price = Cost + Markup.
• 📊 The percent of markup formula is: Percent Markup = (Markup / Cost) * 100%.
• 👕 Example 1: A shirt with a retail price of 200 pesos and a markup of 40 pesos has a cost of 160 pesos.
• 🚲 Example 2: A toy costing 250 pesos with a 60% markup has a retail price of 400 pesos.
• 👕 Example 3: A shirt with a retail price of 500 pesos and a markup of 100 pesos has a markup percentage of 25%.
• 💰 Example 4: A bag costing 200 pesos with a 40% markup based on the retail price would sell for 4000 pesos.
• 📉 Gross profit margin is calculated as: Gross Profit Margin = Sale Price - Unit Cost.
• 🔄 Mark on Marco is a special amount added to the retail price for specific purposes, different from the general markup.
• 💸 Markdown is the amount reduced from the original selling price, calculated as: Markdown = Original Retail Price * Percent of Markdown.
• 🛍️ Trade discount is a reduction from the retail price, also known as a straight discount.

Q & A

What is the definition of 'cost' in the context of business?

In the context of business, 'cost' refers to the amount spent by the person or group who is putting up the business.

What is meant by 'retail price' in the transcript?

The 'retail price' is the selling price or the amount for which a merchandise is sold in the market.

Can you explain the term 'markup' as described in the video?

Markup is the amount the retailer adds on to the cost in order to gain profit.

What is the formula for calculating the retail price according to the transcript?

The formula for calculating the retail price is: Retail Price = Cost + Markup.

How is the percent of markup calculated as mentioned in the script?

The percent of markup is calculated as: Percent of Markup = (Markup / Cost) * 100%.

In the example given, what is the cost of producing one shirt if the retail price is 200 pesos and the markup is 40 pesos?

The cost of producing one shirt is 160 pesos, which is calculated by subtracting the markup from the retail price: 200 pesos - 40 pesos.

What is the formula to determine the markup based on cost?

The formula to determine the markup based on cost is: Markup = Percent of Markup * Cost.

How can you find the retail price if you know the cost and the percent markup?

You can find the retail price by adding the markup to the cost, where the markup is calculated as the percent markup times the cost.

What is the percent of markup for a shirt that costs 500 pesos with a markup of 100 pesos?

The percent of markup for the shirt is 25%, calculated by dividing the markup (100 pesos) by the cost (400 pesos) and then multiplying by 100.

If Grace gets a bag at a cost of 200 pesos and wants to sell it at a 40% markup based on the retail price, how much will she sell the bag for?

Grace will sell the bag for 4000 pesos. This is calculated by first determining that the 40% markup is of the retail price, and then solving the equation where 60% of the retail price (100% - 40% markup) equals the cost (200 pesos), leading to a retail price of 4000 pesos.

What is the difference between markup and gross profit margin?

Markup is the amount added to the cost to determine the selling price and is always greater than the gross profit margin. Gross profit margin is the difference between the sale price and the unit cost, indicating the strength of the retail business.

How is the markdown calculated when a product is on sale?

Markdown is calculated as a percentage of the original retail price. It is the amount reduced from the original selling price, calculated by: Markdown = Original Retail Price * Percent of Markdown.

What is the sale price of a hoodie originally priced at 800 pesos with a markdown of 35%?

The sale price of the hoodie is 520 pesos, calculated by subtracting the markdown (800 pesos * 35% = 280 pesos) from the original price.