Page 15 - LESSON 2: DISCOUNTS AND COMMISSIONS
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Example l:
An article costs ₱40 and sells for ₱55. Find the percent of mark-on based on the selling
price.
Given: ₱55 = selling price
₱40 = cost price
Solution: M2_L1
= −
= ₱55 − ₱40
= ₱15
= /
= ₱15/₱55
= 27.3%
Example 2:
Find the amount and the percent of mark-on based on the cost price if an article costs
₱20 and sells for ₱30.
Given: ₱30 = selling price
₱20 = cost Price
Solution:
= −
= ₱30 − ₱20
= ₱10
= /
= ₱10/₱30
= 33.3%
B. MARKDOWN
Sometimes wholesalers or retailers reduce prices on various items in their stores.
Among the reasons given are: to attract more sales, to meet the prices of competitors, to clear
the store of old stocks or of merchandise that is not selling well. Another way of clearing the
stores of old stocks is to sell at bargain prices during special occasions like Christmas sale,
inventory sale, clearance sale. The practice of reducing the regular selling price is called a
markdown.
LESSON 1: ESTABLISHING RETAIL PRICE 3 | P a g e
