Page 16 - LESSON 2: DISCOUNTS AND COMMISSIONS

We can show how to compute for the markdown through the following example.
Example 1:

Harry Lim, a retail store owner offered for sale at ₱110 for goods that were originally
priced at ₱160. Find: (a) the markdown, and (b) the percent of the markdown.

Solution:
1. To find the markdown, we have:

= −

= ₱160 − ₱110
= ₱50

2. To find the markdown rate, we divide the amount of markdown by the original selling
price.

= /
= ₱50/₱160

= 31.25%

Example 2:
Find the markdown and the markdown rate for a book that was originally tagged at
₱50, but is now being sold at ₱36.

Solution:
1. = −

= ₱50 − ₱35
= ₱15

= /

= ₱15/₱50

= .30 or 30%

C. MARKUP
With the way prices change nowadays, it is not an uncommon occurrence for retailers

to raise their prices. From an original retail price, a retailer may raise the regular selling price

of his remaining stock because of a prescribed increase in price. The amount by which the

regular selling price is increased is called markup.

The following examples will show how this term is being used.

4 | P a g e BUSINESS MATHEMATICS: MODULE 2