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Business Math in Retail Practicum in Business Management

Performance Objective

Upon completion of this lesson, each student will calculate assorted discounts and markups related to

retail math.

Specific Objectives

Students will explain the concepts of cost, dollar markup, and retail price.

Students will calculate cash, trade, quantity, and chain discounts.

Students will define the different types of discounts.

Students will solve various merchandising math problems.

Students will explain how markup percentage is calculated.

This lesson should take 10-12 class days to complete, unless the teacher decides to teach the discount

material separately from markup.

TEKS Correlations

This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities

may result in the elimination of any or all of the TEKS listed.

Interdisciplinary Correlations

Reading I, II, III

110.47(b) o (1) The student uses the following word recognition strategies. The student is expected

to: (A) Apply knowledge of letter-sound correspondences, language structure, and context to recognize words;

(B) Use reference guides such as dictionaries, glossaries, and available technology to determine pronunciations of unfamiliar words;

o (2) The student acquires an extensive vocabulary through reading and systemic word study. The student is expected to:

(A) Expand vocabulary by reading, viewing, listening, and discussing; (B) Determine word meanings through the study of their relationships to other words and concepts such as content, synonyms, antonyms, and analogies;

Preparation

Lesson Plan


o (4) The student comprehends text using effective strategies. The student is expected to: (A) Use prior knowledge and experience to comprehend; (B) Determine and adjust purpose for reading; and (D) Summarize texts by identifying main ideas and relevant details.

Public Speaking I, II, III

110.57 (b)

o (4) Organization. The student organizes speeches. The student is expected to:

(B) Organize speeches effectively for specific topics, purposes, audiences, and occasions.

o (7) Delivery. The student uses appropriate strategies for rehearsing and presenting

speeches. The student is expect to:

(C) Develop verbal, vocal, and physical skills to enhance presentations.

Tasks

Teachers will review the entire lesson and prepare accordingly.

Accommodations for Learning Differences

It is important that lessons accommodate the needs of every learner. These lessons may be modified

to accommodate your students with learning differences by referring to the files found on the Special

Populations page of this website (cte.unt.edu).

Preparation

Copy the handouts

Instructional Aids

Student worksheets

Materials Needed

Copies

Pencils

Equipment Needed

Teacher computer

Projector (for any digital presentation)

Calculators Learner Preparation

How do businesses decide how to price their merchandise?

How do service businesses arrive at a price for their service?

Introduction


List what is included in overhead expenses on the board.

Explain that profit margin is the amount after overhead expenses and mark downs have been taken care of.

Lesson Introduction

Ask the class how much they pay for jeans or shoes.

Ask them what they think the retailer pays for the items.

Tell them the amount between cost and retail price is called dollar markup or profit margin.

Explain retailers have to mark the prices up to cover all overhead costs, including theft and

merchandise they have to put on sale.


Multiple Intelligences Guide

Existentialist

Interpersonal

Intrapersonal

Kinesthetic/

Bodily

Logical/

Mathematical

Musical/Rhythmic

Naturalist

Verbal/Linguistic

Visual/Spatial

MI

OUTLINE

I. Discounts II. Advantages III. Types of Discounts IV. Cash Discounts V. ROG & EOM VI. Pricing VII. Formulas VIII. Wait, I’m Confused IX. Keystone Pricing X. More formulas

NOTES TO TEACHER

The teacher has the discretion to teach

Discounts and Markups back to back or

separate them.

The teacher will use the multimedia

presentation to explain the various types

of discounts. Students will take notes

using the Student Notes Outline. The

students will then complete the

worksheets.

The teacher will use the multimedia

presentation to explain the concept of

markup based on retail method. Students

will take notes using the Student Notes

Outline and then will complete the

worksheets.

These concepts may be somewhat difficult

for the students to grasp. It may be

necessary for the teacher to make up

additional problems. One suggestion is to

put students into groups or pairs and have

them craft five or 10 problems (and work

the answer keys) that could be compiled

and shared with the entire class.

Outline


Guided Practice

The teacher will use the multimedia presentations to teach the material. The teacher will monitor

students’ independent practice.

Review

Why do retailers consider overhead expenses when pricing merchandise?

Why is it an advantage to a retailer to take any discounts available?

What is Keystone pricing?

Informal Evaluation

Teacher will check for understanding

Very small work group option (students help each other)

Formal Evaluation

Tests over the material

Application

Summary

Evaluation


Math: Discounts

Student Notes Outline KEY

OBJECTIVES:

Calculate an assortment of discounts

Assimilate a retail environment through use of word problems in calculating assortments of discounts

Demonstrate knowledge of correct procedures in calculating cash/trade discounts

Demonstrate understanding of trade/cash discounts by calculating EOM and ROG terms

Demonstrate proficiency with math calculations

Calculate quantity and cumulative quantity discounts

What are the Advantages of Discounts?

Allows BUYERS/MERCHANTS the “best deal”

Provides an INCENTIVE to do business w/company

GENERATES $$$ for Open to Buy

Merchant has more $$ available to PURCHASE ADDITIONAL MERCHANDISE

Merchant is more capable to generate PROFIT

Types of Discounts

1. SEASONAL

Purchases must be made well in advance

Usually at least SIX MONTHS in advance

Deep SAVINGS for merchants w/STORAGE.

Buy LARGE QUANTITIES and store in WAREHOUSE

2. QUANTITY

The MORE units ORDERED, the more $$ SAVED

Incentive to PURCHASE MASS QUANTITIES

3. CUMULATVE QUANTITY


A RUNNING total is kept so DISCOUNT INCREASES as more orders are placed

4. CHAIN

Expressed as:

Less 15%, 10%, 5% (percentages will vary)

**DO NOT add PERCENTAGES before taking DISCOUNT

**Take each percentage SEPARATELY from BALANCE

Example of Chain Discount:

A tire manufacturer sells radial tires for $85, less 15%, 9%, 4%.

$85.00 x .15 = $12.75 $72.25 x .09 = $6.50 $65.75 x .04 = $2.63

$85.00 - $12.75 = $72.25 $72.25 - $6.50 = $65.75 $65.75 – 2.63 = $60.42


PART TWO OF PRESENTATION

5. TRADE CREDIT/CASH DISCOUNTS

Allows MERCHANT to sell merchandise prior to billing

Gives EXTRA time to generate PROFIT

Most companies deal with more than one VENDOR

Bills are PAID as terms MATURE

Shown on INVOICE as “Terms:”

Note: Each numeral in the equation may vary:

Expressed as:

2/15, n/60 or 2/15, net 60 or 2/15, n60

Interpreted as:

2% discount if paid within 15 days of the date of the invoice.

All is due 60 days from date of invoice, if the discount is not taken.

Example:

Invoice Amount: $599.65

Date of Invoice: Nov. 12, 2013

Terms: 3/10, n/60

When does the discount deadline end? Nov. 22

When is the final payment due if discount is not taken? Jan 11

What is the amount payable w/discount? $581.66

What is the discount amount in $$? $17.99

Do you know how many days are in each month?

Use the knuckle method


Make a fist and look at your knuckles.

The first knuckle is “January;” February is in between; the second knuckle is “March;” “April” is in between; “May” is the 3rd knuckle; “June” is in between; “July” is the last knuckle; start again on the first knuckle and it’s “August”; then “September” is in between; “October” is the next knuckle; “November” is in between; then “December” is the next knuckle.

All “Knuckles” have 31 days; the in-betweeners have 30 with the exception of February, which has 28 days.

CASH DISCOUNTS PART 2

ROG:

Stands for “Receipt of Goods”

In this case the discount period and the final payment period begin when the merchandise is received, not the invoice date.

2/15, n/60 ROG

EOM:

Stands for “End of Month”

Written: 2/12, n/45 EOM

Actually gives an extra time period for billing

The key to remember: 25th day of the month

if the date of the invoice is before the 25th day of the month, then the counting period for the discount and final payment due starts on the last day of that current month.

If the date of the invoice is after the 25th day of the month, then the counting period for the discount and final payment due jumps to the last day of the month that FOLLOWS THE CURRENT MONTH.


Math: Discounts

Student Notes Outline

OBJECTIVES

Calculate an assortment of discounts

Assimilate a retail environment through use of word problems in calculating assortments of discounts

Demonstrate knowledge of correct procedures in calculating cash/trade discounts

Demonstrate understanding of trade/cash discounts by calculating EOM and ROG terms

Demonstrate proficiency with math calculations

Calculate quantity and cumulative quantity discounts

What are the Advantages of Discounts?

Allows ___________/________________ the “best deal”

Provides an________________ to do business w/company

________________ $$$ for Open to Buy

Merchant has more $$ available to _________________________________

Merchant is more capable to generate ____________

Types of Discounts

1. ________________

Purchases must be made well in advance

Usually at least _________________ in advance

Deep ________________ for merchants w/_________________

Buy _____________ _________________ and store in ___________________

2. ________________

The ________ units _____________, the more $$ _____________

Incentive to __________________________________________

3. ___________________ __________________


A ______________ total is kept so ______________ _______________ as more orders are placed

4. ___________

Expressed as:

Less 15%, 10%, 5% (percentages will vary)

**DO NOT add ___________________ before taking ________________

**Take each percentage _________________ from ________________

Example of Chain Discount:

A tire manufacturer sells radial tires for $85, less 15%, 9%, 4%.

Calculate the problem:

5. _______________________

Allows ____________________ to sell merchandise prior to billing

Gives __________ time to generate ____________

Most companies deal with more than one ____________

Bills are ________ as terms ____________

Shown on ____________ as “Terms:”

Note: Each numeral in the equation may vary:

Expressed as:

2/15, n/60 or 2/15, net 60 or 2/15, n60

Interpreted as:

_____% discount if paid w/in _____ days of invoice.

All is due ______ days from date of invoice.

Example:

Invoice Amount: $599.65

Date of Invoice: Nov. 12, 2004

Terms: 3/10, n/60


When does the discount deadline end? __________

When is the final payment due if discount is not taken? ____________

What is the amount payable w/discount? ___________

What is the discount amount in $$? _________

Do you know how many days are in each month?

Use the knuckle method

Make a fist and look at your knuckles.

The first knuckle is “January;” ___________is in between; the second knuckle is “March;” “April” is in between; ___________is the 3rd knuckle; “June” is in between; “July” is the last knuckle; start again on the first knuckle and it’s ___________; then “September” is in between; “October” is the next knuckle; ___________is in between; then ___________is the next knuckle.

All “Knuckles” have 31 days; the in-betweeners have 30 with the exception of ______________, which has 28 days.


CASH DISCOUNTS PART 2

ROG:

Stands for “__________________”

In this case the discount period and the final payment period begin when the merchandise is received, not the invoice date.

2/15, n/60 ROG

EOM:

Stands for “_______________”

Written: 2/12, n/45 EOM

Actually gives an extra time period for billing

The key to remember: ________day of the month

If the date of the invoice is before the _____day of the month, then the counting period for the discount and final payment due starts on the last day of that _________ month.

If the date of the invoice is after the _____ day of the month, then the counting period for the discount and final payment due jumps to the last day of the_______________________________.


Math Discounts

Calculate the following problems. You may use your notes if you need to. Don’t just copy your

neighbor’s answer!

Date of Invoice: 11/16/13 Purchase amount: $6,789.50

Terms: 3/10, N60

Date paid 12/12/13

Date due to take discount: ________________________

Amount payable w/discount: ________________________

Date due without discount: ________________________

Amount saved by taking discount: ________________________

Date of Invoice: 11/20/13 Purchase amount: $25,759

Terms: 4/15, N45

Date paid: 12/20/13





Date of Invoice: 12/15/13 Purchase amount: $559.60

Terms: 2/10, N60


Date paid: 12/31/13






Terms: 3/10, N30

Date paid: 12/8/13






Terms: 4/15, N90

Date paid: 2/28/ 13







Terms: 2/10, N30

Date paid: 1/25/13






Terms: 6/15, N30

Date paid: 2/28/13






Terms: 4/20, N60

Date paid: 3/31/13







Terms: 3/10, N45

Date paid: 3/21/13



Date due without discount: _______________________



Terms: 3/15, N90

Date paid: 5/2/13






Terms: 3/15, N60


Date paid: 4/2/13





Date of Invoice: 2/10/13 Purchase amount: $19.065.57

Terms: 3/10, N90

Date paid: 2/18/13



Date due without discount: _______________________



Terms: 2/10, N90

Date paid: 12/2/13







Terms: 3/10, N45

Date paid: 8/17/13






Terms: 2/15, N60

Date paid: 9/12/13






Terms: 3/10, N30

Date paid: 5/1/13







Terms: 3/10, N30

Date paid: 1/15/13






Terms: 2/10, N30

Date paid: 10/29/13







Terms: 3/10, N60

Date paid: 9/21/13






Terms: 3/10, N60

Date paid: 8/9/13






Terms: 3/15, N60 EOM

Date paid: 1/10/13







Terms: 3/15, N30 ROG

Date paid: 7/12/13







Date paid: 5/2/13








Date paid: 8/12/13







Date paid: 8/18/13






Math KEY

Discounts

Calculate the following problems. You may use your notes if you need to. Don’t just copy your

neighbor’s answer!!!


Terms: 3/10, N60

Date paid 12/12/13

Date due to take discount: 11/26/13

Amount payable w/discount: $6,585.82

Date due without discount: Jan. 16, 2014

Amount saved by taking discount: $203.68


Terms: 4/15, N45

Date paid: 12/20/13



Date due without discount: Jan. 5, 2014

Amount saved by taking discount: $1,030.36



Terms: 2/10, N60

Date paid: 12/31/13


Amount payable w/discount: $548.41

Date due without discount: 2/13/14



Terms: 3/10, N30

Date paid: 12/8/13




Amount saved by taking discount: $.77


Terms: 4/15, N90

Date paid: 2/28/14







Terms: 2/10, N30

Date paid: 1/25/13






Terms: 6/15, N30

Date paid: 2/28/13







Terms: 4/20, N60

Date paid: 3/31/13


Amount payable w/discount: $28,680


Amount saved by taking discount: $1,195


Terms: 3/10, N45

Date paid: 3/21/13




Amount saved by taking discount: $1,973.70


Terms: 3/15, N90

Date paid: 5/2/13





Amount saved by taking discount $13.58


Terms: 3/15, N60

Date paid: 4/2/14





Date of Invoice: 2/10/14 Purchase amount: $19.065.57

Terms: 3/10, N90

Date paid: 2/18/14







Terms: 2/10, N90

Date paid: 12/2/14






Terms: 3/10, N45

Date paid: 8/17/13






Terms: 2/15, N60

Date paid: 9/12/13







Terms: 3/10, N30

Date paid: 5/1/13






Terms: 3/10, N30

Date paid: 1/15/13


Amount payable w/discount: $76/60





Terms: 2/10, N30

Date paid: 10/29/13






Terms: 3/10, N60

Date paid: 9/21/13







Terms: 3/10, N60

Date paid: 8/9/13







Date paid: 1/10/13





Date Received: 6/26/13 Purchase amount: $85.95


Date paid: 7/12/13








Date paid: 5/2/13







Date paid: 8/12/13








Date received: 8/18/13






Math: Discounts Part 1

Worksheet

CALCULATE THE SEASONAL DISCOUNTS BELOW:

ITEM AMOUNT OF

PURCHASE

SEASONAL

DISCOUNT

AMOUNT OF

DISCOUNT

NET COST TO

BUSINESS

Lawn mowers $980.00 15%

Halloween

costumes

$327.00 5%

Christmas

Decorations

$489.00 20%

Water skis $1757.00 10%

CALCULATE THE PERCENT OF DISCOUNT AND THE TOTAL DUE IF THE FOLLOWING PROMOTIONAL

DISCOUNTS ARE TAKEN:

ITEM AMOUNT OF

PURCHASE

PROMOTIONAL

DISCOUNT

NET COST TO

BUSINESS

DISCOUNT %

Motorcycles $ 2750.00 $220.00 $ %

Ski boots $ 1200.00 $120.00 $ %

Snow boots $ 1750.00 $ 87.50 $ %

Sail boats $ 7560.00 $113.40 $ %


CALCULATE THE QUANTITY AND/OR CUMULATIVE QUANTITY DISCOUNTS:

Refer to the chard to see purchase requirements for discount:

3% 5% 7% 9% 12% 14% 17% 20%

1-10 21-35 36-45 46-55 56-70 71-80 81-90 91-100

ITEM QUANTITY

PURCHASED

AMOUNT OF

PURCHASE

DISCOUNT

ALLOWED

NET COST TO

BUSINESS

Tennis shoes 38 pr. $42.00 .PR $ $

Athletic socks 89 pr. $.37 pr. $ $

Backpacks 95 $2.60 ea. $ $


ANSWER KEY

Math: Discounts Part 1

Worksheet

CALCULATE THE SEASONAL DISCOUNTS BELOW:

ITEM AMOUNT OF

PURCHASE

SEASONAL

DISCOUNT

AMOUNT OF

DISCOUNT

NET COST TO

BUSINESS

Lawn mowers $980.00 15% $147.00 $ 833.00

Halloween

costumes

$327.00 5% $ 16.35 $ 310.65

Christmas

Decorations

$489.00 20% $ 97.80 $ 391.20

Water skis $1757.00 10% $175.70 $ 1581.30

CALCULATE THE PERCENT OF DISCOUNT AND THE TOTAL DUE IF THE FOLLOWING PROMOTIONAL

DISCOUNTS ARE TAKEN:

ITEM AMOUNT OF

PURCHASE

PROMOTIONAL

DISCOUNT

NET COST TO

BUSINESS

DISCOUNT %

Motorcycles $ 2750.00 $220.00 $2530.00 8%

Ski boots $ 1200.00 $120.00 $1080.00 10%

Snow boots $ 1750.00 $ 87.50 $1662.50 5%

Sail boats $ 7560.00 $113.40 $7446.60 1½%


CALCULATE THE QUANTITY AND/OR CUMULATIVE QUANTITY DISCOUNTS:

Refer to the chard to see purchase requirements for discount:

3% 5% 7% 9% 12% 14% 17% 20%

1-10 21-35 36-45 46-55 56-70 71-80 81-90 91-100

ITEM QUANTITY

PURCHASED

AMOUNT OF

PURCHASE

DISCOUNT

ALLOWED

NET COST TO

BUSINESS

Tennis shoes 38 pr. $42.00 pr. $111.72 $1484.28

Athletic socks 89 pr. $.37 pr. $ 5.60 $ 27.33

Backpacks 95 $2.60 ea. $ 49.40 $ 197.60


Math TEST: Discounts

You purchase three dozen backpacks at $12.50 each. You negotiate the sale with the following

terms: 4/15, n/60. The merchandise is delivered on 7-13-13. Find the following:

Deadline for discount period _______________________________

Discount amount $_______________________________

Deadline for full payment _______________________________

Amount saved with discount $_______________________________

A shipment of rugs arrives on May 9, 2013 in the amount of $62,471.98. The terms on the

invoice are 2/10, n/90. Find the following:


Discount amount $______________________________


Amount saved with discount $______________________________

An Order of CDs is delivered and billed on March 3rd. The total invoice billing is $987.52 and

you are granted a 7% promotional discount on the purchase. Payment terms are 2/15, n/45.

Find the following:


Discount amount $_______________________________


Amount saved with discount $_______________________________

You purchase a printer for $749.99, less 9%, 7%, 6%. What is the final price for the printer?

__________________


You purchase the following office furniture:

Desk $ 750

Chair 300

Filing cabinet 150

Bookcase 240

The vendor has offered a quantity discount of 11%, plus a promotional discount of 5% on the

total purchase. What amount did you write a check for? $______________

You order Christmas decorations in June and are offered a 10% seasonal discount. The amount

of the purchase totals $672.45 and you successfully negotiate the following terms:

Seasonal discount amount $_______________________

Deadline for discount ________________________

Discount amount $_______________________

Full payment amount $_______________________

Amount saved after all discounts $_______________________

The following items were ordered on January 13, 2013:

23 lamps @ $17.50 each

12 tables @ $75.00 each

3 couches @ $210.00 each

6 recliners @ $180 each

8 rugs @ $90 each

What is the total order amount before any discounts are offered? $______________

You were granted a chain discount of less 11%, 8%, 5% and a seasonal discount of 4%.


Determine the amount of the purchase after discounts are taken $_______________

The merchandise is delivered and billed on January 26th with the following terms on the

Invoice: 4/15, n/60 EOM

When is the discount deadline? __________________________

When is the full payment due? __________________________

Amount paid if discount is taken $_________________________

Amount to be saved with the discount $____________________

What is the TOTAL dollar amount saved with all discounts considered?

$____________________

Find the answers: (2 pts. for each blank)

ITEM PRICE QUANTITY TOTAL

Shoes $23.65 22.00 pairs _______

Boots $51.50 14 pair _______

Shoelaces .70 8 doz. _______

Shoe polish .84 10 doz. _______

Purses $22.75 9 ea. _______

Purses $ 8.50 10 ea. _______


Math TEST KEY: Discounts

1. You purchase three dozen backpacks at $12.50 each. You negotiate the sale with the following

terms: 4/15, n/60. The merchandise is delivered on 7-13-13. Find the following:

Deadline for discount period July 28, 2013

Discount amount 18.00

Deadline for full payment September 11, 2013

Amount paid with discount $61,222.54

2. A shipment of rugs arrives on May 9, 2013 in the amount of $62,471.98. The terms on the

invoice are 2/10, n/90. Find the following:

Deadline for discount period May 19, 2013

Discount amount $1249.44

Deadline for full payment August 7, 2013

Amount paid with discount $61,222.54

3. An Order of CDs is delivered and billed on March 3rd. The total invoice billing is $987.52 and you

are granted a 7% promotional discount on the purchase. Payment terms are 2/15, n/45. Find the

following:

Deadline for discount period March 18


Deadline for full payment April 17

Amount paid with discount $900.02

4. You purchase a printer for $749.99, less 9%, 7%, 6%. What is the final price for the printer?

$596.63


5. You purchase the following office furniture:

Desk $750

Chair 300

Filing cabinet 150

Bookcase 240

The vendor has offered a quantity discount of 11%, plus a promotional discount of 5% on the

total purchase. What amount did you write a check for? $1217.52

6. You order Christmas decorations in June and are offered a 10% seasonal discount. The amount of

the purchase totals $672.45 and you successfully negotiate the following terms:

Seasonal discount amount $67.25

Deadline for discount July 13


Full payment amount $605.21

Amount saved after all discounts $91.45

7. The following items were ordered on January 13, 2014:

23 lamps @ $17.50 each

12 tables @ $75.00 each

3 couches @ $210.00 each

6 recliners @ $180 each

8 rugs @ $90 each

What is the total order amount before any discounts are offered? $3,732.50

You were granted a chain discount of less 11%, 8%, 5% and a seasonal discount of 4%.

Determine the amount of the purchase after discounts are taken: $2,787.23

The merchandise is delivered and billed on January 26th with the following terms on the

Invoice: 4/15, n/60 EOM


When is the discount deadline? March 15

When is the full payment due? April 29

Amount paid if discount is taken $2,675.74

Amount to be saved with the discount $111.49

What is the TOTAL dollar amount saved with all discounts considered?

$1,057.76

8. Find the answers: (2 pts. for each blank)

ITEM PRICE QUANTITY TOTAL

Shoes $23.65 22 pair $520.30

Boots $51.50 14 pair $721.00

Shoelaces .70 8 dozen $ 67.20

Shoe polish .84 10 doz. $100.80

Purses $22.75 9 ea. $204.75

Purses $ 8.50 10 ea. $ 85.00


Markups

Complete the following chart. Remember to include your $$$ and %%% where necessary!

ADJUST ACCORDING TO SUBJECT

Retail Price Cost $ Mark Up Markup %

$4,597.50 $1,665.00

$ 995.99 $ 445.75

$ 1.75 $ .95

$5,550.45

$3,667.55

$ .95

$ .85

$1,055.99 $ 775.50

$225.75

$ 359.25

$ 2.95 each $ 9.50/ doz.

$ 4.99 each

Find the information needed to complete the problems below:


I. The cost of a suit is $174.55. It retails for $299.99. Determine the $MU and the MU%

$MU= MU%=

II. A DVD player costs $75.00. You mark it up $144.00. Determine the RP and the MU%

RP= MU%=

III. The following shipment arrives. You will need to price the merchandise and move it to the sales

floor.

4 shirts @ $15.50 ea. (cost) $MU $22.50 RP (each) = MU%=


Markups KEY

Complete the following chart. Remember to include your $$$ and %%% where necessary!

Retail Price Cost $ Mark Up Markup %

$4,597.50 $1,665.00 $2,932.50

63.7% (64%)

$ 995.99 $ 445.75

$ 550.24 55.2% (55%)

$ 1.75 $ .80

$ .95 54.2% (54%)

$9,218.00 $5,550.45

$3,667.55 39.7% (38%)

$1.80 $ .95

$ .85 47.2% (47%)

$1,055.99 $ 280.49

$ 775.50 73.4% (73%)

$585.00 $ 225.75

$ 359.25 61.4% (61%)

$ 2.95 each $ 9.50/dz.

(.79 ea.)

$ 2.16 ea. 73.2% (73%)

$ 4.99 each $ 22.95/dz.

($1.91 ea.)

$ 3.08 ea. 61.7% (62%)


Find the information needed to complete the problems below:

I. The cost of a suit is $174.55. It retails for $299.99. Determine the $MU and the MU%

$MU= $125.44 MU%= 41.8% (42%)

II. A DVD player costs $75.00. You mark it up $144.00. Determine the RP and the MU%

RP= $219.00 MU%= 34.2% (34%)

III. The following shipment arrives. You will need to price the merchandise and move it to the sales

floor.

4 shirts @ $15.50 ea. (cost) $MU $22.50 RP (each) = $38.00 MU%= 59.2%

(59%)


Markups Practice

Calculate the following information where needed:

You purchase one dozen desks at $118.00 each. You intend to retail them for $279.99 each. Calculate the $MU and the MU%. What is the total purchase amount? If you were to sell all the desks, what is the dollar amount of total profit that you would make?

$MU

MU%

Total purchase

Total amount of profit

Ice Cream Sundaes retail for $3.99 each. Each one costs you $.92 to make. Find the $MU and the MU%:

$MU:

MU%:

You purchase two dozen tires to sell in your store. You plan to markup each tire by 67%. Calculate the following to determine the retail price of each stock model of tire: QUANTITY STOCK # UNITS COST $MU RETAIL PRICE

4 SSRvTS1 ea. $75.00

3 TTSRvr5 ea. $38.00

4 YNUSV3 ea. $41.55

2 HMq45t ea. $92.90

3 SKX45v1 ea. $122.90

4 LMX50-V ea. $151.60

4 MRSv55a ea. $99.05

Calculate the following:

Socks: $1.28 at cost. MU% = 71%

RP ______

$MU ______

Towels: $4.08 at cost. MU% = 38%

RP ______


$MU ______

Shelves: $13.19 at cost. MU% = 42%

RP ______

$MU ______

Chairs: $51.88 at cost. MU% = 72%

RP ______

$MU ______

Shovels: $13.55 at cost. MU% = 35%

RP ______

$MU ______

Hats: $115.05 at cost. MU% = 29%

RP ______

$MU ______

Shorts: $8.45 at cost. MU% = 31%

RP ______

$MU ______

Suitcase: $16.45 at cost. MU% = 39%

RP ______

$MU ______

Books: $1.45 at cost. MU% = 28%

RP ______

$MU ______

Boots: $52.00 at cost. MU% = 34%

RP ______

$MU ______


Complete the chart:

RETAIL PRICE COST $MU MU%

$6.45 $2.18

$19.33 22%

$169.95 $62.66

$11,555.09 $3,200

$19.95 66%

$199.99 45%

$799.99 $400.00

$15.50 $24.50

$645.00 35%

$49.95 $15.66


Markups Practice KEY

Calculate the following information where needed:

1. You purchase one dozen desks at $118.00 each. You intend to retail them for $279.99 each. Calculate the $MU and the MU%. What is the total purchase amount? If you were to sell all the desks, what is the dollar amount of total profit that you would make?

$MU $ 161.99

MU% 58%

Total purchase $1,416.00

Total amount of profit $1,943.88 2.Ice Cream Sundaes retail for $3.99 each. Each one costs you $.92 to make. Find the $MU and the MU%:

$MU: $3.07

MU%: 77%

3. You purchase two dozen tires to sell in your store. You plan to markup each tire by 67%. Calculate the following to determine the retail price of each stock model of tire:

QUANTITY STOCK # UNITS COST $MU RETAIL PRICE

4 SSRvTS1 ea. $75.00 $302.27 $227.27

3 TTSRvr5 ea. $38.00 77.15 115.27

4 YNUSV3 ea. $41.55 84.36 125.91

2 HMq45t ea. $92.90 188.62 281.52

3 SKX45v1 ea. $122.90 249.52 372.42

4 LMX50-V ea. $151.60 307.79 459.39

4 MRSv55a ea. $99.05 201.10 300.15

4. Calculate the following:

Socks: $1.28 at cost. MU% = 71%

RP $ 4.41

$MU $ 3.13

Towels: $4.08 at cost. MU% = 38%

RP $ 6.58


$MU $ 2.50

Shelves: $13.19 at cost. MU% = 42%

RP $22.74

$MU $ 9.55

Chairs: $51.88 at cost. MU% = 72%

RP $185.29

$MU $133.41

Shovels: $13.55 at cost. MU% = 35%

RP $ 20.85

$MU $ 7.30

Hats: $115.05 at cost. MU% = 29%

RP $162.04

$MU 46.99

Shorts: $8.45 at cost. MU% = 31%

RP $ 12.25

$MU $ 3.80

Suitcase: $16.45 at cost. MU% = 39%

RP $ 26.97

$MU 10.52

Books: $1.45 at cost. MU% = 28%

RP $ 2.01

$MU .56

Boots: $52.00 at cost. MU% = 34%

RP $ 78.79

$MU 26.79


Complete the chart:

RETAIL PRICE COST $MU MU%

$6.45 $2.18 $4.27 66%

$24.78 $19.33 $5.45 22%

$169.95 $107.29 $62.66 37%

$11,555.09 $8,355.09 $3,200 28%

$19.95 $6.78 $13.17 66%

$199.99 $109.99 $90.00 45%

$799.99 $400.00 $399.99 50% (49.9%)

$40.00 $15.50 $24.50 61%

$992.31 $645.00 $347.31 35%

$49.95 $34.29 $15.66 31%

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