MARKUP AND MARKDOWN

In this section, we will learn, how to solve word problems on mark up and mark down. 

First let us understand what is mark up and mark down. 

Mark up ----> Increasing

To get profit in a business, a trader increases the cost price and sells the product. This increment in price is called as "Mark up"  

This "Mark up can either be in percent or in dollars. 

Mark Down ----> Decreasing

To increase the sale, stores will decrease the price of a product by giving offer or discount. This offer or discount is called as "Mark down". 

This mark down can either be in percent or in dollars. 

Shortcuts

Shortcut 1 :

Cost price and marked up percentage are given.

Cost price  =  C.P,  Marked up percentage  =  m%

Then,

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

Shortcut 2 :

List price and marked down percentage are given.

List price  =  L.P, Marked down percentage  =  m%

Then,

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

Shortcut 3 :

List price price and marked down value (in dollars ) are given. 

List price  =  L.P, Marked down value  =  $m

Then,

mark down rate  =  (m / L.P) ⋅ 100%

Shortcut 4 :

Cost price and marked up value are given

Cost price  =  C.P, Marked up value  =  $m

Then,

mark up rate  =  (m / C.P) ⋅ 100% 

Shortcut 5 :

Cost price and selling price are given. 

Cost price  =  C.P, Selling price  =  S.P and S.P > C.P

So, Gain  =  S.P - C.P 

Then,

mark up rate  =  (Gain / C.P) ⋅ 100%

Shortcut 6 :

Selling price and profit percentage are given. 

How to find cost price ? 

Use hint 1 and solve for C.P

Shortcut 7 :

Selling price and loss percentage are given. 

How to find cost price ? 

Use hint 2 and solve for C.P

Shortcut 8 :

Marked price : It is the price before discount given. 

Selling price  =  Marked price - Discount value

Shortcut 9 :

Marked price  =  M.P, Discount percentage  =  D%

Then, the discount value is

=  D% ⋅ M.P

Selling price is 

=  (100 - D)% ⋅ M.P

Shortcut 10 :

Marked price (M.P) and discount value are given. 

Then the discount percentage is 

=  (Discount value / M.P) ⋅ 100% 

Shortcut 11 :

Retailer using false weight : 

A trader cheats his customer to make a profit by stating that he sells at cost price. But he gives his customer less than 1000 grams (false weight) for every 1 kilogram. 

Then, the profit percentage is 

=  (Cheated value /  False weight) ⋅ 100 %

Here,

Cheated value  =  Original weight - False weight

Shortcut 12 :

Two articles are sold at the same price. But, one is sold at a profit of p% and other one is sold at a loss of p%. 

Then, the net result of the transaction is loss. 

The loss percentage is 

=  (p² / 100)%

Shortcut 13 :

The cost price of two articles is same. But, one is sold at a profit of p% and other one is sold at a loss of p%. 

Then, the net result of the transaction is no profit and no loss. 

Do you need the shortcuts explained above as pdf document?

Please click here

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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