martensLA7 - conclusion about the two answers? 30*1.40 = 42...

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1. What are the terms used in selling?  a. Cost – The price including s/h and insurance paid. b. Selling price – The price a merchant is selling at. c. Markup /margin/gross profit – Selling price minus the cost. d. Operating expenses/overhead – The cost of operating. e. Net profit – The profit after all costs and overhead has been deducted. f. Markdown – The difference between the original listed price and the  discounted price. 2. Given that a store bought an item for $30 and sold it for $42, find the % markup  based on cost.  Then find the % markup based on the selling price.  What is your 
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Unformatted text preview: conclusion about the two answers? 30*1.40 = 42 (markup at 40%) 30+x=42 x=12 30 / 42 = 0.714285714 12 / 42 = 0.285714286 3. What does markdown refer to? The markdown refers to the difference in price between the original selling price and the discounted price. 4. How do you calculate % markdown. What do you use as the base? Markdown/original price. The base is the original price. 5. Application Problem: Give one example where you may use a concept found in this chapter. When shopping I and I find a product some % off then I calculate how much the price will be....
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This note was uploaded on 12/30/2009 for the course MATH 1220 taught by Professor Roarty during the Spring '09 term at Metropolitan Community College- Omaha.

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