Calculating Selling Price from Markup Percentage

Introduction

• Objective: Learn how to calculate the selling price given a cost price and a markup percentage.

Key Steps to Calculate Selling Price

• Step 1: Find the amount of the markup.
• Step 2: Add the markup amount to the cost price to get the selling price.

Detailed Explanation

Step 1: Calculate Markup Amount

1. Formula:

   • Markup Amount = (Markup Percentage / 100) * Cost Price.

2. Example 1:

   • Cost Price: $800
   • Markup Percentage: 20%
   • Calculate the markup amount:
     • (20 / 100) * 800 = 160
   • Markup Amount: $160

3. Example 2:

   • Cost Price: $40
   • Markup Percentage: 25%
   • Calculate the markup amount:
     • (25 / 100) * 40 = 10
   • Markup Amount: $10*

Step 2: Calculate Selling Price

1. Formula:

   • Selling Price = Cost Price + Markup Amount

2. Example 1:

   • Cost Price: $800
   • Markup Amount: $160
   • Selling Price = 800 + 160 = 960
   • Selling Price: $960

3. Example 2:

   • Cost Price: $40
   • Markup Amount: $10
   • Selling Price = 40 + 10 = 50
   • Selling Price: $50

Conclusion

• By following the two steps, you can easily calculate the selling price when the markup percentage is given.
• Practice with different cost prices and markup percentages to master the calculation.

Note

• Remember to subscribe for more helpful content.