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- =============================================================^15
- : :^15
- : :^15
- : Example problem #1 :^15
- : :^15
- : :^15
- =============================================================^15
-
- 1. A used car dealer sells an automobile for $5200 and makes^14
- a 30% markup on the deal. What did he pay for the car?^14
-
- (a) $4000^14
- (b) $5000^14
- (c) $6000^14
-
-
- The first thing to do is to remember the formulas that deal with
- markups and markdowns that are based on cost:
-
-
- MARKUP:^15
- ORIGINAL COST + MARKUP AMOUNT = NEW PRICE^15
-
- MARKDOWN:^15
- ORIGINAL COST - MARKDOWN AMOUNT = NEW PRICE^15
-
-
- These formulas can be further broken down into:
-
-
- MARKUP:^15
- ORIGINAL COST + (MARKUP% * ORIGINAL COST) = NEW PRICE^15
-
- MARKDOWN:^15
- ORIGINAL COST - (MARKDOWN% * ORIGINAL COST) = NEW PRICE^15
-
-
- Now that you have the formulas to work with, solving for the
- ORIGINAL COST, MARKUP/DOWN%, MARKUP/DOWN AMOUNT, or the NEW PRICE
- is possible. Let's look at the first part of the problem now:
-
- A used car dealer sells an automobile for $5200 and makes^14
- a 30% markup on the deal.^14
-
- From that first sentence, you know that the NEW PRICE (usually
- called the sale price) is $5200.00. The NEW PRICE is what the
- item sells for after the markup amount has been added.
- Similarly, the NEW PRICE is what an item sells for after the
- markdown amount has been subtracted. You are also able to
- determine that the markup percentage is 30%. Let's fill in the
- parts of the markup formula that we know:
-
- ORIGINAL COST + (MARKUP% * ORIGINAL COST) = NEW PRICE^15
-
- ORIGINAL COST + ( 30% * ORIGINAL COST) = 5200
-
- If you notice from the formula, there is only one unknown left:
- the original cost of the item. To calculate the original cost,
- solve the equation for the original cost.
-
-
- ORIGINAL COST + (30% * ORIGINAL COST) = 5200
- Remember that ORIGINAL COST is 100% of itself:^3
- (100% * ORIGINAL COST) + (30% * ORIGINAL COST) = 5200
- Factor out the common factor ORIGINAL COST:^3
- (ORIGINAL COST) * (100% + 30%) = 5200
- ORIGINAL COST * (130%) = 5200
- Divide both sides by 130%:^3
- 5200 5200
- ORIGINAL COST = ---- = ----
- 130% 1.30
-
- ORIGINAL COST = 4000
-
-
- The original cost that the dealer paid for the car is $4,000.00.
-
-
-
-
-
- =============================================================^15
- : :^15
- : :^15
- : Example problem #2 :^15
- : :^15
- : :^15
- =============================================================^15
-
- 2. A store sells a television set for $625. If the store^14
- makes a markup of 25% of its cost on the sale, what is^14
- the cost of the television set to the store?^14
-
- (a) $600^14
- (b) $500^14
- (c) $550^14
-
-
- The first thing to do is to remember the formula that deals with
- markups based on cost:
-
- ORIGINAL COST + MARKUP AMOUNT = NEW PRICE^15
-
- This formula can be broken down into:
-
- ORIGINAL COST + (MARKUP% * ORIGINAL COST) = NEW PRICE^15
-
- Now that you have the formulas to work with, solving for the
- ORIGINAL COST, MARKUP%, MARKUP AMOUNT, or the NEW PRICE is
- possible. Let's look at the first part of the problem now:
-
- A store sells a television set for $625. If the store^14
- makes a markup of 25% of its cost on the sale^14
-
- From that first sentence, you know that the NEW PRICE (usually
- called the sale price) is $625.00. The NEW PRICE is what the
- item sells for after the markup amount has been added.
- Similarly, the NEW PRICE is what an item sells for after the
- markdown amount has been subtracted. You are also able to
- determine that the markup percentage is 25%. Let's fill in the
- parts of the markup formula that we know:
-
- ORIGINAL COST + (MARKUP% * ORIGINAL COST) = NEW PRICE^15
-
- ORIGINAL COST + ( 25% * ORIGINAL COST) = 625
-
- If you notice from the formula, there is only one unknown left:
- the original cost of the item. To calculate the original cost,
- solve the equation for the original cost.
-
-
- ORIGINAL COST + (25% * ORIGINAL COST) = 625
- Remember that ORIGINAL COST is 100% of itself:^3
- (100% * ORIGINAL COST) + (25% * ORIGINAL COST) = 625
- Factor out the common factor ORIGINAL COST:^3
- (ORIGINAL COST) * (100% + 25%) = 625
- ORIGINAL COST * (125%) = 625
- Divide both sides by 125%:^3
- 625 625
- ORIGINAL COST = ---- = ----
- 125% 1.25
-
- ORIGINAL COST = 500
-
-
- The original cost that the store paid for the TV is $500.00.
-
-
-
-
-
- =============================================================^15
- : :^15
- : :^15
- : Example problem #3 :^15
- : :^15
- : :^15
- =============================================================^15
-
- 3. A book is marked down 15% and now costs $68. What was^14
- the original price of the book?^14
-
- (a) $90^14
- (b) $70^14
- (c) $80^14
-
-
- The first thing to do is to remember the formulas that deal with
- markups and markdowns that are based on cost:
-
-
- MARKUP:^15
- ORIGINAL COST + MARKUP AMOUNT = NEW PRICE^15
-
- MARKDOWN:^15
- ORIGINAL COST - MARKDOWN AMOUNT = NEW PRICE^15
-
-
- These formulas can be further broken down into:
-
-
- MARKUP:^15
- ORIGINAL COST + (MARKUP% * ORIGINAL COST) = NEW PRICE^15
-
- MARKDOWN:^15
- ORIGINAL COST - (MARKDOWN% * ORIGINAL COST) = NEW PRICE^15
-
-
- Now that you have the formulas to work with, solving for the
- ORIGINAL COST, MARKUP/DOWN%, MARKUP/DOWN AMOUNT, or the NEW PRICE
- is possible. Let's look at the first part of the problem now:
-
- A book is marked down 15% and now costs $68.^14
-
- From that first sentence, you know that the NEW PRICE (usually
- called the sale price) is $68.00. The NEW PRICE is what the item
- sells for after the markdown amount has been subtracted. You are
- also able to determine that the markdown percentage is 15%.
- Let's fill in the parts of the markdown formula that we know:
-
- ORIGINAL COST - (MARKDOWN% * ORIGINAL COST) = NEW PRICE^15
-
- ORIGINAL COST - ( 15% * ORIGINAL COST) = 68
-
- If you notice from the formula, there is only one unknown left:
- the original cost of the item. To calculate the original cost,
- solve the equation for the original cost.
-
-
- ORIGINAL COST - (15% * ORIGINAL COST) = 68
- Remember that ORIGINAL COST is 100% of itself:^3
- (100% * ORIGINAL COST) - (15% * ORIGINAL COST) = 68
- Factor out the common factor ORIGINAL COST:^3
- (ORIGINAL COST) * (100% - 15%) = 68
- ORIGINAL COST * (85%) = 68
- Divide both sides by 85%:^3
- 68 68
- ORIGINAL COST = ---- = ----
- 85% .85
-
- ORIGINAL COST = 80
-
-
- The original cost of the book is $80.00.
-
-
-
-
-
- =============================================================^15
- : :^15
- : :^15
- : Example problem #4 :^15
- : :^15
- : :^15
- =============================================================^15
-
- 4. A silver chain is marked down 5% and now costs $15.20.^14
- What was the original price?^14
-
- (a) $16.00^14
- (b) $18.00^14
- (c) $14.48^14
-
-
- The first thing to do is to remember the formula that deals with
- markdowns based on cost:
-
- ORIGINAL COST - MARKDOWN AMOUNT = NEW PRICE^15
-
- This formula can be broken down into:
-
- ORIGINAL COST - (MARKDOWN% * ORIGINAL COST) = NEW PRICE^15
-
- Now that you have the formulas to work with, solving for the
- ORIGINAL COST, MARKDOWN%, MARKDOWN AMOUNT, or the NEW PRICE is
- possible. Let's look at the first part of the problem now:
-
- A silver chain is marked down 5% and now costs $15.20.^14
-
- From that first sentence, you know that the NEW PRICE (usually
- called the sale price) is $15.20. The NEW PRICE is what the item
- sells for after the markdown amount has been subtracted. You are
- also able to determine that the markdown percentage is 5%. Let's
- fill in the parts of the markdown formula that we know:
-
- ORIGINAL COST - (MARKDOWN% * ORIGINAL COST) = NEW PRICE^15
-
- ORIGINAL COST - ( 5% * ORIGINAL COST) = 15.20
-
- If you notice from the formula, there is only one unknown left:
- the original cost of the item. To calculate the original cost,
- solve the equation for the original cost.
-
-
- ORIGINAL COST - (5% * ORIGINAL COST) = 15.20
- Remember that ORIGINAL COST is 100% of itself:^3
- (100% * ORIGINAL COST) - (5% * ORIGINAL COST) = 15.20
- Factor out the common factor ORIGINAL COST:^3
- (ORIGINAL COST) * (100% - 5%) = 15.20
- ORIGINAL COST * (95%) = 15.20
- Divide both sides by 95%:^3
- 15.20 15.20
- ORIGINAL COST = ----- = -----
- 95% .95
-
- ORIGINAL COST = 16
-
-
- The original cost of the silver chain is $16.00.
-
-
-
-
-
- =============================================================^15
- : :^15
- : :^15
- : Example problem #5 :^15
- : :^15
- : :^15
- =============================================================^15
-
- 5. A clothing store advertised a suit for $150. If this price
- represented a 40% discount from the original price, find
- the original price.
-
- (a) $140
- (b) $250
- (c) $200
-
-
- The first thing to do is to remember the formula that deals with
- markdowns based on cost:
-
- ORIGINAL COST - MARKDOWN AMOUNT = NEW PRICE^15
-
- This formula can be broken down into:
-
- ORIGINAL COST - (MARKDOWN% * ORIGINAL COST) = NEW PRICE^15
-
- Now that you have the formulas to work with, solving for the
- ORIGINAL COST, MARKDOWN%, MARKDOWN AMOUNT, or the NEW PRICE is
- possible. Let's look at the first part of the problem now:
-
- A clothing store advertised a suit for $150. If this price^14
- represented a 40% discount from the original price^14
-
- From that first sentence, you know that the NEW PRICE (usually
- called the sale price) is $150. The NEW PRICE is what the item
- sells for after the markdown amount has been subtracted. You are
- also able to determine that the markdown percentage is 40%.
- Let's fill in the parts of the markdown formula that we know:
-
- ORIGINAL COST - (MARKDOWN% * ORIGINAL COST) = NEW PRICE^15
-
- ORIGINAL COST - ( 40% * ORIGINAL COST) = 150.00
-
- If you notice from the formula, there is only one unknown left:
- the original cost of the item. To calculate the original cost,
- solve the equation for the original cost.
-
-
- ORIGINAL COST - (40% * ORIGINAL COST) = 150
- Remember that ORIGINAL COST is 100% of itself:^3
- (100% * ORIGINAL COST) - (40% * ORIGINAL COST) = 150
- Factor out the common factor ORIGINAL COST:^3
- (ORIGINAL COST) * (100% - 40%) = 150
- ORIGINAL COST * (60%) = 150
- Divide both sides by 60%:^3
- 150 150
- ORIGINAL COST = ---- = ----
- 60% .60
-
- ORIGINAL COST = 250
-
-
- The original cost that the clothing store paid for the
- suit is $250.00.
-