Markup Mark on and Markdown : Grade 11 Business Mathematics
Summary
TLDRIn 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.
Outlines
📈 Understanding Markup and Retail Pricing
Teacher Andy Guzman introduces the concepts of cost, retail price, and markup in the context of business and mathematics. The cost is the amount spent to establish a business, retail price is the market selling price, and markup is the additional amount added to the cost for profit. The formulas discussed include retail price = cost + markup and percent of markup = (markup / cost) * 100%. An example is given where a shirt has a retail price of 200 pesos with a 40-peso markup, leading to a cost of 160 pesos. The lesson also explores how to calculate markup based on cost or retail price and how to determine the percentage of markup.
🔢 Calculating Retail Price and Markup Percentage
This section delves into calculating the retail price and markup percentage. An example is provided where a toy costing 250 pesos has a 60% markup based on cost, resulting in a retail price of 400 pesos. Another example calculates the markup percentage for a sales kit with a cost of 500 pesos and a 100-peso markup, determining the markup percentage to be 25%. The paragraph also explains the difference between markup and gross profit margin, highlighting that markup is always greater than the gross profit margin. The concepts of mark on marco and markdown are introduced, with examples of how to calculate the cost of a product and gross profit margin.
💹 Applying Markdown to Determine Sale Prices
The final paragraph focuses on markdown, which is the reduction from the original selling price. It explains how markdown is calculated as a percentage of the original retail price and provides examples. In one scenario, a hoodie with a list price of 800 pesos is sold with a 35% markdown, resulting in a sale price of 520 pesos. Another example involves a bicycle originally sold for 5600 pesos but marked down to 3920 pesos, with a markdown of 1680 pesos and a markdown rate of 30%. The paragraph concludes with a summary of the lesson on markup, mark on, and markdown, encouraging viewers to subscribe for more educational content.
Mindmap
Keywords
💡Cost
💡Retail Price
💡Markup
💡Percent of Markup
💡Gross Profit Margin
💡Markdown
💡Percent of Markdown
💡Trade Discount
💡Profit Margin
💡Selling Price
Highlights
Introduction to the topic of markup, markdown, and martel for business mathematics.
Definition of 'cost' as the amount spent to start a business.
Explanation of 'retail price' as the selling price in the market.
Description of 'markup' as the amount added to cost for profit.
Presentation of the formula: Retail Price = Cost + Markup.
Introduction of the percent markup formula: Percent Markup = (Markup / Cost) * 100%.
Application problem 1: Calculating the cost of a shirt with a given retail price and markup.
Application problem 2: Determining the retail price of a toy based on cost and markup percentage.
Application problem 3: Finding the percent of markup for a shirt given its retail price and markup amount.
Application problem 4: Calculating the selling price of a bag with a desired markup percentage based on the retail price.
Discussion on gross profit margin as a measure of retail business strength.
Explanation of the relationship between markup percent and gross profit margin.
Definition and calculation of 'mark on marco' for specific purposes.
Application of formulas to determine cost and gross profit margin from selling price and markup.
Introduction to 'markdown' as a reduction from the original selling price.
Explanation of formulas related to markdown: Markdown = Original Retail Price * Percent of Markdown and Percent of Markdown = (Markdown / Original Retail Price) * 100%.
Application problem involving the calculation of sale price after a markdown on a hoodie.
Application problem calculating markdown and markdown rate for a bicycle with an original and sale price.
Conclusion of the lesson on markup, markdown, and martel with a call to action for subscribing to the channel.
Transcripts
hello and good day welcome back to our
class
this is teacher andy guzman and our
topic for today is markup
marcon and martel for business
mathematics
so let's have the following words the
first one is the cost
represent amount spent by the person or
group who is putting up the business
next is retail price refers to the
selling price or the amount for which a
merchandise is sold in the market
and markup is the amount the retailer
adds
on to the cost in order to gain profit
for the formula that we will use we have
the retail price is equal to cost plus
markup
as well as the percent of markup is
equal to markup divided by cos
times one hundred percent
so let's have application number one so
process assured
for 200 pesos with a markup of 40 pesos
what is the cost of producing one shirt
so again let's identify
the given so we have the retail price is
equal to 200 pesos
well the markup is 40 pesos now in order
to find the
cost that is actually retail price minus
markup
so we have cos is equal to 200 minus 40
so cos is equal to 160 pesos
so therefore the cost of a shirt is 160
pesos
sometimes retailers are more interested
in the rate of markup
than in the apple market price in such
case markup is computed as a percent
known as percent markup there are two
ways to determine the markup so the
first one
is based on costs take note that markup
is equal to percent of markup times cost
now in order to determine the percentage
markup that is equal to markup divided
by cos
times 100 on the other hand we can
determine the markup
based on the retained price so
we have the markup is equal to percent
of markup times retained price
or the percent of markup is equal to
markup
divided by retained price times one
hundred percent
let us consider problem number two so
stop toy costs 250 pesos to manufacture
and it's marked up 60 based on costs
so what is the retail price of the stock
point so first let's identify the given
so the cost is 250 pesos and the percent
markup
is 60 so again for our step number one
we have markup is equal to percent
markup times the cost
so the markup is equal to 60 times 250
so your markup is equal to 150
pesos next we want to find out the
retail price so that
is equal to cost plus markup so we have
250 plus 150
so the retail price is equal to 400
pesos
so therefore the retain price is equal
to 400
pesos let us consider problem number
three
so what is the percent of markup of that
shirt based on the cost of the sales kit
for 500 pesos
with a markup of 100 pesos so let's
identify first a given
so the retail price is equal to 400
pesos while the markup is equal to 100
vessels
so for our step number one we will find
out the cost so that is equal to retail
price
minus markup so we have 500 minus 100
so the cost is equal to 400 pesos
step number two so percent of markup is
equal to markup divided by cos
times 100 substitute the value of markup
and cost
so that is 100 divided by 400 times
100 so the percent of markup is equal to
25 so therefore we can say that the
markup
is 25
let's move on to problem number four so
grace get a bug at a cost of 2
hundred pesos and wants to sell it at
forty percent markup based on a retained
price
how much will she sell the bug for
so let's identify the given so the
retail price is equal to two thousand
four hundred pesos
but the markup is 40 so the retail price
is equal to
cost plus mark up and remember that the
retail price is actually your 100
percent retained price
so the cost is two thousand four hundred
but your markup is forty percent
of your tail price now if i'll subtract
both side of the equation
by forty percent of retail price so you
come up with one hundred percent
retail price minus 40 retail price
this is equal to 60 percent retail price
so on the right hand side we have only
two thousand
four hundred but i want to find out the
value of the retained price
so i divide both sides of the equation
by
sixty percent
so therefore we can say that the retail
price is equal to four thousand
pesos
while the markup may be taught as the
amount that the retailer earns from the
same
there is another quantity that measures
the level of retained success
this is the profit margin or gross
profit margin
it is computed as follows so we have
gross profit margin
is equal to sale price minus unit cost
this margin indicates the strength of
the retail business
it impacts market percent with the
following relationship
so markup percent is equal to gross
profit margin divided by unit cost times
100
while the quantities are related they
are not entirely
similar markup is always greater than
the gross profit margin
this spark often leads to the incorrect
notion that a seller is earning a
certain amount of profit
when in part he is earning less and
other definitions that
we will talk about is the mark on marco
is a special
amount added to the retail price for
specific
purpose if a product with a selling
price of 62 pesos and 50 cents as a
markup
then we have as follows so for our cost
of product
so that is selling price divided by 100
plus markup percent so that is 60 to
50 divided by 100 plus 25
or this is equal to 6250
divided by 125
that 125 percent is equal to 1.25 so
again 6250 divided by 1.25
is equal to 50 pesos so this
is the cost of product next
the gross profit margin is equal to sale
price minus unit cost
so again 6250 minus 50
so your gross profit margin is equal to
1250 pesos
on the other hand your percent profit
margin is equal to gross profit margin
divided by unit cost
so we have 1250 divided by 6250
so this is equal to 20
what it is important to note amounts
that should be added to the
costs determining the selling price also
entails knowing when to reduce the
selling price by certain amount
at appropriate times an amount reduced
for the original selling price is called
markdown again so markdown is an amount
reduced from the original
selling price on the other hand markdown
is equal to original retained price
times percent of mark now also
we have this formula percent of markdown
is equal to markdown
divided by original retail price times
100
or sometimes the markdown is commonly
known as straight discount
again so trade discount is an amount
marked down from
the retail price
so let's have the application for
markdown let's consider this
so a hoodie that has a list price of 800
pesos
is on sale for 35 off so what is the
sale price
of the hoodie so first let's identify
the given so the list price is equal to
800 pesos
while the percent of markdown is equal
to 40
percent so first so markdown is equal to
least price times percent of
markdown then substitute 800 plus 40
so this is equal to 280 pesos a smart
down
it means that you've been able to save
280
pesos in the process next
so we have the sale price is equal to
list price minus markdown
so the list price is equal to 800 pesos
but she's been able to save 280 pesos a
smart down
so therefore the sale price is equal to
520
pesos it means that you will pay only
520 pesos
so therefore the sale price of a hoodie
is only
520 pesos
let's have another application for
markdown so bicycle is originally sold
for five thousand six hundred pesos and
is marked down to sell
for three thousand nine hundred twenty
pesos
so determine the markdown and the
markdown rate
first so if we will determine the
original price
again so that is five thousand six
hundred pesos well the same price is
three thousand
nine hundred twenty pesos
okay so for sale price that is original
price
minus marked out so we have
3920 is equal to 5600 minus
mark 9. we do not know the markdown yet
so again if we will try to manipulate
this
so markdown is actually five thousand
six hundred
minus three thousand uh nine hundred
twenty pesos
so we come up with a markdown of one
thousand six hundred
eighty pesos next if we would like to
determine the percent of markdown so
that is equal to markdown divided by
original price
times 100 percent so we have the percent
markdown is equal to six hundred eighty
okay divided by five thousand six
hundred times one hundred percent
so the percent of markdown is equal to
thirty
percent so therefore the markdown is one
thousand six hundred eighty pesos okay
and the markdown rate is 30
so that is our lesson on markup mark on
and markdown
again this is teacher on indigenous
month do not forget to subscribe to my
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