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Selling Price In order to make money by selling a product, you need to sell it for more than it costs. How do you determ

Selling Price In order to make money by selling a product, you need to sell it for more than it costs. How do you determine how much to charge for a product?. Lesson Objective Calculate the markup as a percent of the selling price. Content Vocabulary. markup rate. markup rate

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Selling Price In order to make money by selling a product, you need to sell it for more than it costs. How do you determ

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  1. Selling Price In order to make money by selling a product, you need to sell it for more than it costs. How do you determine how much to charge for a product?

  2. Lesson Objective Calculate the markup as a percent of the selling price. Content Vocabulary • markup rate markup rate The markup on an item expressed as a percent of its selling price.

  3. Example 1 Roy’s Florist buys roses for $10.99 a dozen. It sells them for $18.95 a dozen. What is the markup based on the selling price?

  4. Example 1 Answer: Step 1 Find the markup. Selling Price – Cost $18.95 – $10.99 = $7.96

  5. Example 1 Answer: Step 2 Find the markup rate based on the selling price. Markup ÷ Selling Price $7.96 ÷ $18.95 = 0.420 or 42%

  6. Example 2 A ⅜-inch drill kit sells for $59.99. The cost of the drill kit to the store is $29.00. Find the markup as a percent of the selling price.

  7. Example 2 Answer: Step 1 Find the markup. Selling Price – Cost $59.99 – $29.00 = $30.99

  8. Example 2 Answer: Step 2 Find the markup as a percent of the selling price. Markup ÷Selling Price $30.99 ÷ $59.99 = 0.5165 or 51.7%

  9. Practice 1 A bowl sells for $9.99. The cost of the bowl to a store is $5.99. Find the markup as a percent of the selling price.

  10. Practice 1 Answer 40 percent

  11. Practice 2 Find the markup and the markup rate based on the selling price. Selling price: $56.87 Cost: $39.99

  12. Practice 2 Answer Markup: $16.88 Markup rate: 30 percent

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