# MARKUP AND MARKDOWN WORD PROBLEMS ANSWERS

Problem 1 :

A computer store used a markup rate of 40%. Find the selling price of a computer game that cost the retailer \$25.

Solution :

Selling price (S.P)  =  (100 + m)%  C.P

Here,

M  =  40, C.P  =  \$25

Then,

S.P  =  (100 + 40)% ⋅ 25

S.P  =  140% ⋅ 25

S.P  =  1.4  25

S.P  =  \$35

So, the selling price is \$35.

Problem 2 :

A golf store pays its wholesaler \$40 for a certain club, and then sells it to a golfer for \$75. What is the markup rate?

Solution :

Cost price (C.P)  =  \$40

Selling price (S.P)  =  \$75

Mark up value  =  75 - 40  =  \$35

Mark up rate  =  (35 / 40) ⋅ 100%  =  87.5%

So, the mark up rate is 87.5 %

Problem 3 :

A store uses a 40% markup on cost. Find the cost of a pair of shoes that sells for \$63.

Solution :

Selling price (S.P)  =  (100 + m)%  C.P -----(1)

Here,

S.P  =  \$63,  m  =  40

Substitute 63 for S.P and 40 for m in (1).

(1)----->  63  =  (100 + 40)%  C.P

63  =  140% ⋅ C.P

63  =  1.4  C.P

63 / 1.4  =  C.P

45  =  C.P

So, the cost of a pair of shoes is \$45.

Problem 4 :

A product is originally priced at \$55 is marked 25% off. What is the sale price?

Solution :

Selling price (S.P)  =  (100 - m)% ⋅ L.P -----(1)

Here,

L.P  =  \$55,  m  =  25

Substitute 55 for L.P and 25 for m in (1).

(1)----->  S.P  =  (100 - 25)%  55

S.P  =  75%  55

S.P  =  0.75  55

S.P  =  41.25

So, the selling price is \$ 41.25.

Problem 5 :

A product that regularly sells for \$425 is marked down to \$318.75. What is the discount rate?

Solution :

Regular price  =  \$ 425

Marked down price  =  \$ 318.75

Marked down value  =  425 - 318.75  =  106.25

Marked down rate  =  (106.25 / 425)  100%

Marked down rate  =  25%

Problem 6 :

A product is marked down 15%; the sale price is \$127.46. What was the original price?

Solution :

Selling price (S.P)  =  (100 - m)%  Original price -----(1)

Here,

S.P  =  127.46,  m  =  15

Substitute 127.46 for S.P and 15 for m in (1).

127.46  =  (100 - 15)% ⋅ Original price

127.46  =  85%  Original price

127.46  =  0.85  Original price

127.46 / 0.85  =  Original price

149.95  =  Original price

So, the original price is \$ 149.95.

Problem 7 :

A sells to B an item at 15% profit. B sells the same item to C at 20% profit. If C pays \$ 1656 for it. What is the price at which A bought the item?

Solution :

Let x be the cost price of A.

Then, we have

Cost price of B  =  1.15x

Cost price of C  =  1.2(1.15x)

Cost price of C  =  1.38x

Given : The cost of C is \$1656.

1.38x  =  1656

Divide each side by 1.38

x  =  1200

So, the price at which A bought the item is \$1200.

Problem 8 :

Mr. Lenin sold a chair at a loss of 15%. If he had sold at a mark up rate of 10%, he would have got \$100 more. What is the cost price of the chair?

Solution :

Let x be the cost price of the chair.

S.P (-15%)  =  85% of x

S.P (-15%)  =  0.85x -----(1)

S.P (+10%)  =  110% of x

S.P (+10%)  =  1.1x -----(2)

In (2), he got \$100 more than (1).

Then, we have

(2) - (1)  =  100

1.1x - 0.85x  =  100

0.25x  =  100

25x  =  10000

x  =  400

So, the cost price of the chair is \$400.

If you would like to have more practice problems on markup and markdown, please click on the links given below.

Worksheet 1

Worksheet 2

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