Dee Hwa Liong Academy: Buying and Selling
Dee Hwa Liong Academy: Buying and Selling
Dee Hwa Liong Academy: Buying and Selling
ILLUSTRATION
A dealer bought 15 crates of
bananas at P11,250.00. If the dealer
imposed P1,050.00 as the selling
price per crate, find the amount of
markup per crate of bananas.
DETERMINING MARKUP AND MARKUP RATE
The markup is usually expressed as a percentage of the
cost of a product. This percentage is called the markup
rate or the markup rate based on the cost.
Markup
Markup Rate
Cost
ILLUSTRATION
A shop sells a laptop computer at P20,000.00. If each
computer costs P16,500.00, what is the markup rate?
DETERMINING MARKUP AND MARKUP RATE
The formula for selling price when the given is markup rate
instead of markup
Selling Price Cost 1 Markup Rate
ILLUSTRATION
A home appliance retailer bought ten electric fans at
P1,050.00 each. He sold each unit with a 25% markup
based on the cost. Find the selling price for each electric
fan.
DETERMINING MARKUP AND MARKUP RATE
We can also compute markup based on the selling
price. The markup based on the selling price is often called
the margin, and the markup rate based on the selling price
is known as the percentage margin.
Margin
Percentage Margin
Selling Price
ILLUSTRATION
A fruit vendor sells apple for P15.00 per piece. If the cost
per apple is P12.50, determine the Percentage margin.
DETERMINING MARKUP AND MARKUP RATE
The formula for selling price when the given is percentage
margin
Cost
Selling Price
1 Percentage Margin
ILLUSTRATION
A retailer buys goods at P1,450.00 per item and
imposed a percentage margin of 21.62%. Determine the
selling price.
ILLUSTRATION
a) A motorcycle salesman bought a scooter at
P47,500.00, Find the selling price if he wishes to
have a 25% markup based on the cost.
b) An electronics store sells headphones at P1,899.00.
If each headphone costs the store P1,200.00,
determine the markup and the rate of markup based
on the cost.
c) An appliance store purchases refrigerators at
P11,700.00 per unit. What is the selling price per
refrigerator if the store wishes to have a 30% margin?
ILLUSTRATION
d) A purchasing manager of a business firm bought 10
dozen pairs of shoes for P101,040.00. If he sold each
pair for P1,180.00, find he markup and the rate of the
markup based on the cost.
e) A piece of furniture is to be sold at a profit margin of 20%
if it costs P4,450.00, find the selling price and the
margin.
f) A fruit dealer bought five crates of mangoes at
P3,150.00. If each crate contains 20 kilograms, and the
dealer imposed at 30% markup based on the cost, find
the selling price per kilogram of mangoes.
SEAT WORK #1
Determine the missing amounts in the table below.
Markup/ Selling Markup Percentage
Item Cost
Margin Price Rate Margin
a P1,500.50 P1,200.00
b P3,200.00 40%
c P11,350.00 30%
d P350.00 50%
e P600.99 20%
f P200.00 P1,500.00
g P388.00 P950.50
h P150.00 10%
INTRODUCTION TO MARKDOWN
ILLUSTRATION
A light-emitting diode (LED) lamp regularly priced at
P1,948.00 is on sale for P1,499.00. Determine the
amount of markdown
DETERMINING MARKDOWN RATE
The markdown is usually given in terms of a percentage
of the original selling price. To compute the markdown rate,
we use the original selling price as the base.
Markdown
Markdown Rate
Original Selling Price
ILLUSTRATION
A shop sells a laptop computer at P20,000.00. If the
shop imposed a P1,500.00 markdown, determine the
markdown rate.
DETERMINING MARKDOWN RATE
Combining the two formulas for markdown given above,
we can obtain a formula for the reduced price in the
following manner:
Reduced Price Original Selling Price 1 Markdown Rate
ILLUSTRATION
During the clearance sale of a furniture shop, a dining
set originally priced at P42,000.00 was sold at 40%
markdown. What is the reduced price?
ILLUSTRATION
a) An item sells for P480 and is reduced to sell for P300.
Find the markdown amount and the markdown rate
b) A book bag is priced to sell for P2,450 and was reduced
by 35%. Find the amount of markdown and the reduced
price.
c) An item costs P4,000 and is marked up 60% based on
the cost. The first markdown rate is 20% and the second
markdown is 30%. What is the final selling price?
d) An item is originally priced to sell for P750 and is marked
down 40%. A customer has a coupon for an additional
15%. What is the total percent reduction?
ILLUSTRATION
e) A fish vendor bought 100 kilograms of bangus at P66.00 per
kilogram. He originally set the selling price to obtain a 40% gross
margin. However, to ensure that all will be sold, he gave a 15%
markdown. Determine the original selling price, reduced price,
and the amount of markdown per kilogram.
f) A certain interior design Shoppe paid P1,970 for a fern stand
and imposed a 60% markup based on the cost. The
management included it in a special promotional markdown of
30%. The stand was damaged during the sale and was marked
down for an additional 40%. What was the final selling price of
the stand?