1 / 26

Mark-ups And Selling Price

Mark-ups And Selling Price. A Student’s Guide to basic financial mathematics and when to use it. Think About This:. How do shops make money? Have you ever bought something with the intention of selling it later for a higher price?. Skills Check. What is a percent ?.

hija
Download Presentation

Mark-ups And Selling Price

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Mark-ups And Selling Price A Student’s Guide to basic financial mathematics and when to use it

  2. Think About This: • How do shops make money? • Have you ever bought something with the intention of selling it later for a higher price?

  3. Skills Check What is a percent? “Percent” means “for (each) hundred”. “Per” is derived from Latin and means “for”. “Cent” (also Latin) means hundred. Mathematically a percent is one hundredth, one out of one hundred or 1/100. Still not sure? Click here!

  4. Skills Check What percentage is a whole? Percentages are out of one hundred, so a whole is 100/100 or 100%. Confused? Click here!

  5. Up For A Challenge? Test your ability to convert fractions to decimals to percentages by clicking here!

  6. Remember • Fraction to decimal: Divide the top number (the numerator) by the bottom number (the denominator) • E.g. 6/9 = 6 divided by 9 = 0.67 • Decimal to percent: Multiply your decimal by 100 • E.g. 0.67 x 100 = 67% • Percent to fraction: Get rid of the % sign and write the number over one hundred (i.e. Make your number the numerator and 100 your denominator). Simplify if possible. • E.g. 67/100 = (approriximatly) 2/3

  7. Financial Vocabulary • Percent – Parts per hundred • Profit – Financial gain. Specifically it is the difference between the amount the earned and the amount spent on buying/producing. • Loss – • Selling Price – • Buying Price • Discount – • Mark-up –

  8. Mark-Ups And Profit I buy lollipops that cost me $1 each. I am selling them to other people for $1.30 Have I changed the price? How much have I changed the price by? Am I making a profit? How much is my profit?

  9. Lollipop Review • I bought the lollipops for $___. Therefore, my buying price was $__ Buying price is how much the (re)seller paid. • I sold the lollipops for $____. Therefore my selling price was $___. Selling price is how much the seller sells a product for. • I added $____ to the buying price. Therefore, the mark-up was $___. A mark-up is how much a product’s price is increased by the seller. A mark-up may be equal to profit.

  10. Mark-Ups Shops mark-up (increase) the price of the products that they buy from wholesalers so that they can make money (a profit). This means they sell things for more than they pay for them. A mark-up is how much the shops increase the price of a product or the difference between the buying price and the selling price. It can be calculated using this formula: Mark-up = Selling price – Buying Price

  11. Calculating A Mark-up A shop buys a dress to resell. It costs the shop $44.50. The shop decides to resell the dress for $72.30. What mark up has the shop made? Buying price = $44.50 Selling price = $72.30 • Write formula: Mark-up = Selling Price – Buying Price • Substitute values into formula: Profit = $72.30 - $44.50 • Calculate answer: Profit = $27.80 • Write your answer in a sentence: The shop has marked up the dress by $27.80.

  12. Calculating Mark-ups A grocery store buys apples at $2.01 per kilogram and decides to resell them for $4.67 per kilogram. What is the mark up on each kilogram?

  13. Apple Answer Mark up = selling price – buying price Mark up = $4.76 - $2.01 Mark up = $2.75

  14. Calculating Mark-ups *Billy buys a chocolate bar for $1.20 and decides to resell it for $2.40. What is the mark-up? **A car dealer buys a car off a manufacturer for $10 500. The car dealer decides to sell the car for $14 350. What is the mark-up? **Mary buys a television for $1433.45. She sells it for $1554.24. What mark-up has she made? ***Kate buys a CD for $12.50. If she wants to mark-up the CD by $3.40, how much should she sell the CD for?

  15. Percentages in Financial Mathematics • Have you ever gone to a shop and seen a % sign?

  16. Percentages in Financial Mathematics • Percentages are often used in financial mathematics. • We can explain mark ups using percentages!

  17. Meet Beth! Meet Beth. She owns and manages a clothing boutique. Every week she receives new stock for her store, such as dresses, t-shirts, suits and shoes.

  18. Beth’s Dilemma The thing is, Beth buys all these clothing and accessories for different prices. One day she receives an order of t-shirts, which cost $12.33 per t-shirt, and an order of party dresses, which cost $113.50 per dress.

  19. $113.50

  20. Beth’s Dilemma Beth decides that it would be reasonable to mark up the price of the dress by $34.05 – so that it will be resold at $147.55. However, she cannot justify marking up the price of the t-shirt by the same amount.

  21. What to do? How can Beth be fair and consistent with her mark-ups?

  22. Beth’s Mark-up Idea! Beth does some research and realises that if she marks each product by a certain percentage she can be consistent!

  23. Mark-ups as a % • Often retailers decide to mark-up products based on their buying price • They may use a percentage of the buying price to figure out a fair selling price

  24. How is this done? Let’s say Beth decides to mark up the t-shirt by 30% First, we find what 30% of the t-shirts buying price is: $12.33 x (30/100) = $3.70 [The mark up is $3.70] Then we add that amount to the buying price: $12.33 + $3.70 = $16.03 Therefore, the selling price of the t-shirt will be $16.03.

  25. Questions! *The buying price of a piano was $750. The mark up is 50%. How much is the mark-up in dollar value? **Craig bought a pair of shoes for $25. He wants to mark up the shoes by 25%. How much will he sell them for? ***Ronald buys apples at $3.25 per kilogram. He wants to mark up the price by 36.5%. What is the dollar value of the mark up per kilogram? How much will each kilogram sell for?

  26. Extend! The following link will take you to a quiz where you can test your knowledge of discounts (coming soon!) and mark-ups! Mark-ups and Discounts – click here!

More Related