Markup and Markdown

Show your work for each problem.

1.
A store marks up an item that cost 50 dollars by 20%. Which calculation gives the selling price?
1. a) $50 + 0.20$
2. b) $50 \times 1.20$
3. c) $50 \times 0.20$
4. d) $50 \times 0.80$
Answer: $50 \times 1.20$
The selling price is 100% + 20% = 120% of the cost, so multiply by $1.20$ : $50 \times 1.20 = 60$ dollars. $50 \times 0.20 = 10$ is only the markup.
2.
An item is 30% off. What percent of the original price do you pay?
1. a) $130\%$
2. b) $70\%$
3. c) $30\%$
4. d) $3\%$
Answer: $70\%$
You pay $100\% - 30\% = 70\%$ of the original price, so the multiplier is $0.70$ .
3.
A price gets 20% off and then another 25% off the new price. What single discount is this the same as?
1. a) $35\%$
2. b) $50\%$
3. c) $40\%$
4. d) $45\%$
Answer: $40\%$
$0.80 \times 0.75 = 0.60$ , so you pay 60% and the total discount is 40%, not 45%.
4.
A shop buys a lamp for 40 dollars and sells it for 50 dollars. What is the percent of markup?
1. a) $25\%$
2. b) $20\%$
3. c) $80\%$
4. d) $10\%$
Answer: $25\%$
The markup is $50 - 40 = 10$ dollars, and $\frac{10}{40} = 0.25 = 25\%$ . Dividing by 50 would give 20%, which uses the wrong base.
5.
A price is marked up 25% and then marked down 25%. How does the final price compare with the starting price?
1. a)6.25% lower
2. b)The same as the start
3. c)25% lower
4. d)6.25% higher
Answer: 6.25% lower
$1.25 \times 0.75 = 0.9375$ , so the final price is 93.75% of the start: 6.25% lower. The markdown is taken from the larger price.
6.
A store buys headphones for 60 dollars and marks them up 40%. What is the selling price in dollars?
Answer: 84
$60 \times 1.40 = 84$ . The markup is $60 \times 0.40 = 24$ dollars, and $60 + 24 = 84$ dollars.
7.
A coat costs 120 dollars and is 25% off. What is the sale price in dollars?
Answer: 90
$120 \times 0.75 = 90$ . The discount is $120 \times 0.25 = 30$ dollars, and $120 - 30 = 90$ dollars.
8.
A shirt that normally costs 32 dollars is on sale for 24 dollars. What is the percent of markdown? (Enter the number without the % sign.)
Answer: 25
The discount is $32 - 24 = 8$ dollars, and $\frac{8}{32} = 0.25 = 25\%$ .
9.
After a 20% discount, a video game costs 36 dollars. What was the original price in dollars?
Answer: 45
Original $\times 0.80 = 36$ , so Original $= \frac{36}{0.80} = 45$ dollars. Check: $45 \times 0.80 = 36$ .
10.
A phone case costs a shop 15 dollars. The shop marks it up 60%, and later sells it at 25% off. What is the final price in dollars?
Answer: 18
Selling price: $15 \times 1.60 = 24$ dollars. Sale price: $24 \times 0.75 = 18$ dollars, still 3 dollars above the cost.
11.
Sneakers cost a store 50 dollars. The store adds a 30% markup. Find the selling price.
Answer: 65
1. What is the markup amount in dollars? 15
2. What is the selling price in dollars? 65
12.
A jacket costs 70 dollars and is marked down 20%. Find the sale price.
Answer: 56
1. What is the discount in dollars? 14
2. What is the sale price in dollars? 56
13.
A bookshop buys a book for 12 dollars and adds a 75% markup. Use a multiplier to find the selling price.
Answer: 21
1. What multiplier gives a 75% markup? 1.75
2. What is the selling price in dollars? 21
14.
A bike shop buys a bike for 300 dollars and sells it for 420 dollars. Find the percent of markup.
Answer: 40
1. What is the markup in dollars? 120
2. Divide the markup by the cost price. What decimal do you get? 0.4
3. What is the percent of markup? (number only) 40
15.
A sofa was 750 dollars and is now on sale for 600 dollars. Find the percent of markdown.
Answer: 20
1. What is the discount in dollars? 150
2. Divide the discount by the original price. What decimal do you get? 0.2
3. What is the percent of markdown? (number only) 20
16.
A sale tag says: 40% off, now 54 dollars. Find the original price and how much you save.
Answer: 90
1. What multiplier belongs to 40% off? 0.6
2. What was the original price in dollars? 90
3. How many dollars do you save? 36
17.
A laptop costs 400 dollars. It is 25% off, and a coupon takes an extra 10% off the reduced price. Find the total discount in percent.
Answer: 32.5
1. What is the price after the 25% discount? 300
2. What is the price after the extra 10% off? 270
3. How many dollars do you save in total? 130
4. What is the total discount in percent? (number only) 32.5
18.
A store buys a watch for 80 dollars, marks it up 50%, and later sells it at 30% off. Find the profit as a percent of the cost price.
Answer: 5
1. What is the selling price after the 50% markup? 120
2. What is the sale price after 30% off? 84
3. What is the profit in dollars? 4
4. What is the profit as a percent of the cost? (number only) 5