Mark up and mark down PDF

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1. A retailer purchased 300Kg of cucumber at 60 cents per kilogram. 5% spoilage is expected. If he plans to make 40% markup based on overall cost what is the selling price of cucumber. Selling price = Cost + Mark up Total cost = 300kg x RM0.60 Selling price of 285kg = RM180 + 0.4(180) Total cost = RM180 Selling price of 285kg = RM252 Amount left after spoilage = 300 x 95% Amount left after spoilage = 285kg Selling price of 1kg = RM252 ÷ 285kg Selling price of 1kg = RM0.88 2. During a clearance sale, an appliance department marked down a glass stove by 12%, making the selling price RM320. At the selling price department made a 30% markup on the selIing pnce. Calculate a) the regular price of the glass stove NP = L (1 – r) RM320 = L (1- 12%) L = RM 363.64 b) the cost of the stove Selling price = Cost + Mark up 320 = x + 0.3(320) x = RM224 c) the markup percent of the glass stove at regular price. Mark-up per cent at the regular price = (Regular price – Cost) ÷ (Regular price) = (RM363.64-224 ) ÷ RM363.64 = 38.40% 3. Mr Fariz wants to sell an item that costs RM200 at a price less 15% discount that will give him a 26% markup based on cost. Calculate: a) the actual selling price Selling price = Cost + Mark up Selling price = RM200 + 0.26(200) Selling price = RM252

b) the list price NP = L (1 – r) RM252 = L (1- 0.15%) L = RM296.47 4. Miss Luna purchased 12 branded handbag for RM6500. The operating expenses incurred for the sale of the handbag were 20% of the cost. Luna made a 35% net profit based on cost. For each handbag calculate: a) the selling price Selling price = Cost + Mark up Selling price = RM6500+ 0.55(6500) Selling price for 12 = RM10075 Selling price for one= RM839.58 b) the breakeven price RM6500 x 120% ÷12= RM650 c) the maximum markdown percent RM839.58 – RM650 = RM189.58 5. A shoe shop purchased a brand of shoes at RM28.50 per pair and sold them at RM32 per pair. Calculate: a) amount of markup Selling price = Cost + Mark up RM32 = RM28.50 + x x = RM3.50 b) markup on the selling price RM3.50 𝑥 100% = 10.94% RM32 6. Calculate the selling price of an electric typewriter if the purchase price is RM1250 and the markup on cost is 20%. Selling price = Cost + Mark up SP = RM1250 + 0.2(1250) SP = RM1500

7. A factory manufacturing bags sells a certain type of bag to its distributor for RM65 each. The factory markup the price at 35% on cost. For each bag calculate: a) the cost of production Selling price = Cost + Mark up RM65 = x + 0.35(65) x = RM42.25 b) the gross profit profit = RM65 - RM42.25 profit = RM22.75 c) the percentage of markup on the selling price 𝟑𝟓% = 𝟐𝟓. 𝟗𝟑% 𝟏 + 𝟑𝟓%...