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# Chapter 8 Homework

Chapter 8 Homework. 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. %Markup on Cost.

## Chapter 8 Homework

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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%

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