Chapter 8 Homework

1. Chapter 8 Homework

2. Chapter 8 - Formula Review • The Basic formula is C + M = S Cost + Markup = Sales Price A washer that cost $250 is selling for $500. What is the markup on this washer? $250 + M = $500 M = $500 - $250 M = $250

3. %Markup on Cost • What is the % Markup (or Markup % on Cost for this washer)? • M = ? M% • C, M = $250, C = $250 • $250 = __M% • $250 • $250 = __M% $250 1 = __M% -OR- 100% = M%

4. %Markup on Selling Price • What is the percent Markup (or Markup % on selling price for this washer)? • M = ? M% • S, M = $250, S = $500 • $250 = __M% • $500 • $250 = __M% $500 .50 = M% -OR- 50% = Markup% on S.P.

5. More Formulas ___% • C = M -OR- ___% • S = M With either of these, you can substitute the ___% of ? into the basic formula, i.e.: 30% • C = M so C + 30%C = S This is the same as saying 100%C + 30%C -OR- Converted to decimal it is: 1.3C = S

6. Example • Markup on a computer is equal to 30% of cost. A computer is selling for $799.95. What is the cost of the computer? • M = 30%C • C + M = S • C + 30%C = S • 1.3C = $799.95, C = $799.95 ÷ 1.3 • C = $615.346 or $615.35

7. Even More Formulas • To find the % markup on Cost when you know the M% of Selling Price: M%•S = M%•C 1 - M%•S • To find the % markup on Selling Price when you know the M% of Cost: M%•C = M%•S 1 + M%•C • Remember the M% on Cost is always MORE!

8. The Last Formula - Markdown • Use the __% • Original = ▲ formula. The original is the price BEFORE the sale or markdown. Example: A dress was reduced to $34.99 from $57.99. By what percent was the dress marked down? Round to nearest percent.

9. Answer 1.) Find the change: $57.99 - 34.99 = $23 2.) __% of $57.99 = $23 3.) .3966 = 39.66% or rounded to nearest percent = 40% markdown

10. Problem 8-2 S = C + M Markup is based on cost. S = $400 + 20%($400) S = $400 + $80 S = $480 and M = $80

11. Problem 8-4 • Solve for cost. Selling Price = $4,000 M% on Cost = 30% S = C + M $4,000 = C + 30%(C) $4,000 = 130%C $3,076.92 = C

12. Problem 8-6 • Dollar Markup = $4.70 %M on Cost = 102.17% • Find Selling Price and Cost • C = $4.70 102.17% C = $4.60 S = C + M S = $4.60 + 4.70 S = $9.30

13. Problem 8-8 • Selling Price = $80 M% on SP = 30% • Find Dollar Markup and Cost • S = C + M $80 = C + 30%($80) • $80 = C + $24 C = $56 M = $24

14. Problem 8-10 • Cost = $800 M% on SP = 55% • S = C + M S = $800 + 55%(S) • S – 55%(S) = $800 • 45%(S) = $800 • S = $1,777.78

15. Problem 8-12 • Dollar Markup = $4 • %M on Selling Price = 20% • M = 20%(S) $4 = 20%(S) • S = $20 C = S – M • C = $20 – 4 or $16

16. Problem 8-14 Percent markup on Selling Price = 13% M% on Cost = ? M%•S = M%•C 1 - M%•S .13 = M% • C .13 ÷ .87 = .1494 or 15% 1 - .13

17. Problem 8-18 • Cost = $600 • Markup on Cost = 45% or M%•C = 45% • S = C + M, S = $600 + $600 • 45% • S = $600 + $270 • S = $870

18. Problem 8-20 • Original price = $58.00 • Marked down price $ 8.70 • A.) Change (or amount of markdown) = $58.00 - 8.70 or $49.30 B.) __% of Original = Change __% • $58.00 = $49.30 X% = 49.30 ÷ 58.00 X% = .85 or 85%

19. Problem 8-22 S – C = M $6,700 – 200 = $6,500 M%(C) = M C $6,500 $200 = 3,250%

20. Problem 8-24 S = C + M $120 = C + 30%C $120 = 130%C $92.31 = C

21. Problem 8-26 Beginning hour 1: $475 ∙ 90% = $427.50 End of Hour 1: $427.50 ∙ 101% = $431.78 Beginning hour 2: $431.78 ∙ 90% = $388.60

22. Problem 8-26 (cont.) $475.00 - 388.60 $86.40 M = $86.40 What % of Selling Price is M? ___% of $475 = $86.40 $86.40 $475 = 18.19%