Mark ups and Discounts Mark Ups When a

Mark ups and Discounts

Mark Ups • When a shop sells an item it will mark it up – that is add money to the price to make a profit. • This can be calculated using percentages and using a multiplier. • An increase of 10% would mean that the new price is 110% of the original cost.

• Calculate the selling price of an item if it was purchased from the wholesaler for $34. 99 and a 22% mark up is added as well as a 10% GST.

Discounts • Discounts are a reduction in the price of an item. • There are 3 main types of discounts: • Trade Discounts – if you work in a trade, then you are able to get a discount for materials – i. e. a painter and paint. • Cash Discount – Due to the fact that a business has to pay to use Visa etc. if you pay cash they may be able to give you a discount – always ask. • Settlement Discounts – if you pay your bills within certain times – you can get discounts – 10/7, 5/14 and n/30

p e h t s i s Thi y a p u o rice y x is the perce The re-arrangement would be: Original Price = Net price / (100 -x)% ntage discou nt

(a) Find the net price of a can of paint if the original was $49. 95 including GST when a trade discount of 17. 5% is given. (b) If a tradesman pays $78. 00 after getting a trade discount of 18%, what must have been the original price of the goods ?

Series Discounts • There are times when we may have a number of discounts in a series – rather than 1 figure. • You can replace this by a single figure by multiplying them together. • So a series discount of 10%, 15% and 5% would be: • (100 -10) x (100 -15) x (100 -5) • . 9 x. 85 x. 95 = 0. 72675