Objective:
- Calculate the markup and selling price of an item
What is a Markup?
A markup occurs when a business needs to make more profit on an item. The price of the item is increased. Some examples of markups in the real world include the price of gas at a gas station, plane ticket prices, the price of clothing items, and stocks. In these cases, sometimes the price will decrease or increase. When price increases it is called a markup and when price decreases it is called a discount. You will learn more about discounts in the next lesson.
Markup: The amount of money a price is increased.
Selling price: The new price of an item after it has been marked up
We can calculate the markup and selling price with the formula's below:
Markup: The amount of money a price is increased.
Selling price: The new price of an item after it has been marked up
We can calculate the markup and selling price with the formula's below:
Examples
Let's look at a few examples of a real-world problem involving a markup!
In the example above, $9.00 is equivalent to $9. You could multiply 0.25 by $9 and you will also get $2.25 for the markup.
Let's look at another markup example:
Your Turn
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