Making Sense of Markups

Name ______Hour______

Formulas:Markup = Retail Price - Cost

Markup Rate = Markup/Retail Price

  1. Determine the initial markup and the initial markup as a percentage of the retail price for the following items:

Retail PriceCostInitial Markup- $Markup Rate - %

  1. $240.75$175.00______
  2. $445.50$335.00______
  3. $114.50$70.50______
  4. $19.40$13.80______
  5. $65.75$53.00______
  6. Bob’s Bakery purchases bagels for $3.99 per dozen. They sell the bagels for $7.95 per dozen. What are the initial markup and the markup rate on a dozen bagels based on retail price?

Initial markup ______Markup rate ______

  1. Use an equation to answer the questions.
  1. What is 115% of $60 costMarkup Amount ______

Retail Price______

  1. $215 retail with a 135% of what number?Cost Amount______

Markup Amount______

  1. Last year there were 525 homecoming t-shirts. This year we need to order 20% more than last year.How many total t-shirts should we order?

______

  1. Determine net profit on the following problems.
  1. Retail Price: $356

Cost: $168

Overhead is 35% of retail price .

What is the net profit?______

B. Retail Price: $24.99

Cost: $8.50

Overhead is 25% of retail price.

What is the net profit?______

  1. Steve’s Ski Shop purchases boots for $68.75. Steve sells the boots for $124.99. Steve estimates his overhead expense to be 30% of the retail selling price of his merchandise. What is the net profit on the boots?

______

  1. Our school store bought 48 under armour sweatshirts this past holiday season. The sweatshirts were a popular item so we would like to order 40% more than last year. How many total sweatshirts will we need to order?

______

  1. A jacket purchased for the school store cost $85.00 and you want to sell it in the store for $134.99. What is the markup rate based on cost?

______

  1. Your competitor sells a pair of shoes for $89.99. You want to sell your shoes for $84.99 to be competitive but still maintain a 32% markup. What is the cost you can pay to meet this goal?
  1. Premium Outlet sells you the shoes for $54.50. Mile One Running sells you the shoes for $57.99. Based on the answer above, which could you afford and still make a profit?
  1. Below is a sales invoice. Determine the amount to be extended, subtotal, 7% sales tax, and total amount due for the following sales check.

Qty / Article / Price / Amount
4 / Calculators / $8.99
2 Boxes / Pencils / $10.75/box
5 Reams / Paper / $17.95/ream
6 / Felt-tip Pens / $1.29
Subtotal
Sales Tax
Total Amount