Answer This!

1. 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? ANSWER
2. AUS Electronics pays Php. 37 200 for a digital
camcorder. If the markup is 19% on the cost, find the
selling price. ANSWER
3. RFS Sports Inc. sells home-gymnasium package for
Php. 175 000 and maintains a markup of 37% on
selling price. Find the markup value. ANSWER
4. The grocer purchases a gallon of mineral water for
Php. 49.50 and sells it for Php. 56.75. What is his
gross margin? ANSWER
5. The washing machine had a selling price of Php. 4 792. It
had been marked up Php. 1 248. What was its cost?
ANSWER
6. A hot-and-cold water dispenser sells for Php. 8 021.50.
The markup on it is 31.5% of cost. Find the cost.
ANSWER
7. A laser printer costing Php. 8 750 is sold for Php. 12 250.
Find the markup rate based on the cost. ANSWER
8. A wall clock cost Php. 608.40 and sell for Php. 780. What
is the percentage of markup based on selling price?
ANSWER
ANSWERS

1. Given: C= Php. 37 200 MR = Php. 89

SP= C + M
SP= 161 + 89
SP= Php. 250 selling price of the mathematics book.
2. Given: C= Php. 37 200 MRc= 19% = 0.19
SP= C + (C X MRc)
SP= 37 200 + (37 200 X 0.19)
SP= 37 200 + 7 068
SP= Php. 44 268 selling price of the digital camcorder
3. Given: SP= Php. 175 000 MRsp= 37% = 0.37
Msp= MRsp X SP
Msp= (0.37) (175 000)
Msp= Php. 64 750 the markup value
4. Given: SP= Php. 56.75 C= Php. 49.50
SP= C+M
M= SP-C
M= 56.25 - 49.50
M= Php. 7.25 the margin
5. Given: SP= Php. 4 792 M= Php. 1 248
SP= C + M
C= SP - M
C= 4 792 – 1 248
C= Php. 3 544 the cost
6. Given: SP= Php. 8 021.50 MR= 31.5%= 0.315
C= SP / 1+MR
C= 8 021.50 / 1+0.315
C= 8 021.50 / 1.315
C= Php. 6 100 the cost
7. Given: C= Php. 8 750 SP= Php. 12 250
MRc= Mc / C
MRc= SP – C / C
MRc= 12 250 – 8 750 / 8 750
MRc= 0.40 or 40% markup rate on cost
8. Given: C= Php. 608.40 SP= Php. 780
MRsp= Msp / SP
MRsp= SP – C / SP
MRsp= 780 – 608.40 / 780
MRsp= 0.22 or 22% markup rate on selling price
 MARK DOWN

- Price reduction from the original selling price of

merchandise.
Formulas
Markdown= Regular Price X Markdown Rate

Sale Price= Regular Price – Markdown

Markdown Rate= Markdown / Regular Price

Regular Price= Sale Price / 100% - Markdown Rate

Example 1:
1. What are the markdown and the sale price on an antique
jar that has a regular price of Php. 38 500 and is on sale for
26% off the regular price?
Given:
Regular Price= Php. 35 800
Markdown Rate= 26%= 0.26
Markdown= Regular Price X Markdown Rate
Markdown= 35 800(0.26)
Markdown= Php. 9 308
 Sale Price= Regular Price – Markdown
Sale Price= 35 800 – 9 308
Sale Price= Php. 26 492

Thus, the markdown is Php. 9 308 and the sale price is

Php. 26 492
Try This!
1. An old LED TV model which was marked down at 20% is on
sale for Php. 70 265. Find the regular price.
Given: Sale Price= Php. 70 265
Markdown Rate= 20%
Regular Price= Sale Price / 100% - Markdown Rate
Regular Price= 70 265 / 100% - 20%
Regular Price= 70 265 / 0.80
Regular Price= Php. 87 831.25
2. If all the merchandise, with a selling price of Php. 7 800 is to
be sold for Php. 6 474. Find the markdown.
Given: Regular Price= Php. 7800
Sale Price= Php. 6 474
Sale Price= Regular Price – Sale Price
Markdown= Regular Price – Sale Price
Markdown= 7 800 – 6 474
Markdown= Php. 1 326 is the markdown
3. Sofia has some shirts in her boutique that have now been
sold. She decides to mark them down from Php. 850 to Php.
552.50, what percentage did she mark them down?
Given: Regular Price= Php. 850
Sale Price= 552.50
Markdown Rate= Markdown / Regular Price
Markdown Rate= Regular Price – Sale Price / Regular Price
Markdown Rate= 850 – 552.50 / 850
Markdown Rate= 297.5 / 850
Markdown Rate= 0.35 or 35%
Thus, the markdown rate is 35%
Trade Discounts
Trade Discounts
- Reduction from list price
- Offered between manufacturer and wholesaler or between
wholesaler and retailer.
List Price
- Suggested price of an item which was set by the manufacturer
or supplier.
Net Price
- Amount a business actually pays for the merchandise after the
discount has been subtracted.
Formulas
Trade 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

Example 1:
Find the net price of a shirt listed at Php. 925. The retailer is granted
a 20% trade discount.
Given: List Price= Php. 925
Trade Discount Rate= 20% = 0.20
Trade Discount= List Price X Trade Discount Rate
= (925)(0.20)
= Php. 185
Net Price= List Price – Trade Discount
= 925-185
= Php. 740
Thus, the net price is Php. 740
Try This!
1. A retailer paid Php. 991.20 less for a bill of goods
amounting to Php. 3 540 after he was allowed a trade
discount by the wholesaler. What was the rate of the trade
discount?
Given: Trade Discount= Php. 991.20
List Price= Php. 3 540
Trade Discount Rate= Trade Discount / List Price
= 991.20 / 3 540
= 0.28 or 28%
Thus, the discount rate is 28%
2. After the reduction of a trade discount rate of 20% from a
bill of goods, the invoice price was Php. 12 000. What was the
list price?
Given: Rate of List Price= 100%
Trade Discount= 20%
Invoice Price= Php. 12 000
Rate of Invoice Price= Rate of List Price- Trade Discount Rate
Rate of Invoice Price= 100% - 20%
Rate of Invoice Price= 80%
List Price= Invoice Price / Rate of Invoice Price
List Price= 12 000 / 0.80
List Price= Php. 15 000
Thus, the list price is Php. 15 000