PROBLEMS ON MARKUP AND MARKDOWN PRICES

Problem 1 :

Find

(i) the profit (ii) the selling price for the following items:

a) a shirt is purchased for $20 and marked up 10%

b) a DVD player is purchased for $250 and marked up 80%

Solution :

(a)  Cost of shirt  =  $20

Marked up  =  10%

Selling price  =  (100+10)% of 20

=  110% of 20

=  1.10 (20)

Selling price  =  22

Profit  =  Selling price - Cost price

=  22 - 20

Profit  =  $2

(b)  Cost price  =  $250

Marked up  =  80%

Selling price  =  (100+80)% of 250

=  1.80 (250)

Selling price  =  450

Profit  =  Selling price - Cost price

=  450 - 250

Profit  =  $200

Problem 2 :

Find

(i) the loss (ii) the selling price for the following items:

a) a cap is purchased for $25 and marked down 20% as it is shop-soiled

b) a necklace is purchased for $325 and marked down 35% as the shop is closing down

Solution :

(a)  Cost price of cap  =  $25

Marked down  =  20%

Selling price of cap  =  (100-20)% of 25

=  80% of 25

=  0.8(25)

=  $20

Loss  =  Cost price - Selling price

=  25 - 20

Loss  =  $5

b)  Cost price of cap  =  $325

Marked down  =  35%

Selling price of cap  =  (100-35)% of 325

=  65% of 325

=  0.65(325)

=  $211.25

Loss  =  Cost price - Selling price

=  325 - 211.25

Loss  =  $113.75

Problem 3 :

A contractor buys his materials from a wholesaler and sells them at a 12% mark up. For one particular job the materials cost him $920 . What profit does he make on the materials?

Solution :

Cost of material with markup of 12%  =  $920

Let the original price of the material be x

112% of x  =  920

1.12x  =  920

x  =  920/1.12

x  =  821.42

Profit gained by the wholesaler  =  920-821.42

=  $98.58

Problem 4 :

Phuong bought a cupboard for $140. She marked it down by 15% as the paintwork was scratched. What was:

(a) her loss (b) her selling price?

Solution :

Cost of cupboard  =  $140

Markdown  =  15%

Selling price  =  (100-15)% of 140

=  85% of 140

=  0.85(140)

=  $119

Loss  =  140-119

=  $21

Problem 5 :

A computer software retailer used a markup of 150%. Find the cost of the computer game that cost the retailer $25.

Solution :

Cost by retailer = $25

= 150% of 25

= 1.50(25)

= 37.5

So, retailer price is $37.5.

Problem 6 :

An item originally priced $55 is marked 25% off. What is the sale price ?

Solution :

Original price = $55

Marked off = 25%

= (100 - 25)% of 55

= 75% of 55

= 0.75(55)

= 41.25

So, the sale price after markdown is $41.25.

Problem 7 :

A man wants to buy a new winter coat and finds one he really likes, but it is too expensive at $139. So, he decides to wait. After thanks giving, the price of the coat is marked down 35%. How much would the coat cost after thanks giving ?

Solution :

Price of coat = $139

Markdown = 35%

Cost of coat after markdown = (100 - 35)% of 139

= 65% of 139

= 0.65 (139)

= 90.35

So, price of coat after thanks giving is $90.35.

Problem 8 :

Abby Matthews, store manager for Macy's does not know how to price a refrigerator that cost $900. She shows her boss wants a 140% markup on the cost. Help Abby markup the cost of the refrigerator.

Solution :

Original price of refrigerator = $900

Markup price = 140%

= 140% of 900

= 1.40(900)

= 1260

So, the markup price is $1260.

Problem 9 :

Kathy buys a bicycle after a 30% markdown. The original price was $490. What did she pay ?

Solution :

Since it is markdown, we have to reduce the price by 30%.

Original price = $490

= (100 - 30)% of 490

= 70% of 490

= 0.70(490)

= 343

So, he amount she has to pay is $343.

Problem 10 :

Zack has an old car. He wants to sell it for 60% off the current price. The market price is $500. How much money would he receive in exchange for the car if he were able to sell it at that rate ?

Solution :

Marked price = $500

Offer = 60%

Markdown = (100 - 60)%

= 40% of 500

= 0.40(500)

= 200

So, he is able to sell at the rate of $200.

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