Page 17 - LESSON 2: DISCOUNTS AND COMMISSIONS

Example 1:
A commodity originally tagged at ₱32.70 is now being sold for ₱40.00. Find, (a) the
markup, and (b) the markup rate.

Given: ₱32.70 = Previous selling price

₱40.00 = Increased selling price

Solution: M2_L1
a) = −
= ₱40.00 − ₱32.70
= ₱ 7.30

b) = /

= ₱7.30/32.70
= 22.3%

Sometimes retailer term previous selling price as regular selling price and the increased
selling price as a new selling price.

Example 2:

Fair Mart is increasing the selling price of belts from ₱75.00 to ₱90.00. What is the
percent of markup?
Given: ₱75.00 = regular selling price
₱90.00 = new selling price

Solution:

a) = −
= ₱90.00 − ₱75

= ₱15
b) = /

= ₱15/₱75
= .20 or 20%

c) = ₱50/₱160
= 31.25%

LESSON 1: ESTABLISHING RETAIL PRICE 5 | P a g e