Buying and selling formulas:

RETAILING EQUATION:
 Convert a based on selling price percent to a
 Selling price= Cost+ Markup based on cost percent:
 Markup = Selling price – Cost Percent markup b
Percent markup based on cost=
 Cost = Selling price – Markup 100 %− percent mark
CALCULATING PERCENT MARKUP BASED ON COST MARKDOWN;
AND BASED ON SELLING PRICE: 
 𝑃𝑒𝑟𝑐𝑒𝑛𝑡 𝑚𝑎𝑟𝑘 − 𝑢𝑝 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑐𝑜𝑠𝑡 = Amount of markdown=Original selling price−sale price
Markup MARKDOWN PERCENT:
cost
M Amount of markdown
 % M cost =  Markdown percent=
c Selling price

Calculating Selling Price When Cost and Percent Sale Price:

Markup Based on Cost are Known:
 Sale = Original selling price (100% –
 Selling Price = C(100% + %M COST ) Pric Markdown Percent)
e
Calculating Cost When Selling Price and Percent
Markup Based on Cost Are Known: Original Selling Price:

Selling price 
 Cost = Sale price
100 % +% MU cost Original selling price=
100 %−markdown percent
Calculating Percent Markup Based On Selling Price:
Series of Mark-ups and Markdowns:
 Percent markup based on selling price (rate)
Markup ( portion ) cost
= 1. First month: SP=
100 %−% Markup selling price
Selling price(base)
2. Second month: Saleprice=Osp(100 %−%MD)
Calculating Selling Price When Cost and Percent 3. Third month: SP=
Markup Based on Selling Price Are Known: ¿
cost ¿ 2 nd month
100 %−% Markup selling price3
Cost
 Selling price= 4. Fourth month: Saleprice=
100 %−Μ sellingprice
Osp ¿ 3 rd month(100 %−%MD4)
Calculating Cost When Selling Price and Percent 5. Fifth month : Saleprice=
Markup Based on Selling Price Are Known: Osp ¿ 4 th month(100 %−%MD5)
 Cost = Selling Price 100% - Μ sellingprice Perishable Goods:
Converting percent markups from cost to selling • Step 1: Find the Total Expected Selling Price.
price and vice versa:
• Step 2: Find the anticipated spoilage.
 Convert a based on cost percent to a based on
selling price percent: Anticipated spoilage = Total quantity x Spoilage rate
Percent markup based on cost
Percent markup based on selling price=  Step 3: on cost Total expected
100 % + percent markup based
selling price
Selling price of =
perishable goods Total quantity –
Anticipated spoilage
Formulas for trade discount TD = LP x SED

Net Price Trade Discount Rate

**If you are given the list price and trade discount, **If you are given a series of %trade discount,
compute for the SED.
NP = LP - TD
**If you are given the list price and one %trade
discount, **If you are given the net price and list price,
NP = LP x (100 - %TDR) %TDR = 1 - (NP/LP)

**If you are given the list price and series of %trade
discount,
RULES in WRITING FINAL ANSWERS
1. Calculate first the net price factor (NPF):
Net price factor and Single equivalent discount -
NPF = (100% - %TDR)(100% - %TDR)(100% - write complete decimal places / numbers
%TDR)

Net price, Trade discount and List price - round off to

2. Multiply NPF to list price to get the net price: 2 decimal places
NP = LP x NPF

Trade Discount
**If you are given the list price and %trade discount,
TD = LP x %TDR

**If you are given the list price and net price,
TD = LP - NP

**If you are given the list price and a series of %trade
discount,
1. Calculate first the single equivalent discount
(SED): SED = 1 - (100%-%TDR)(100%-%TDR)
(100%-%DR)
or
SED = 1 - NPF

2. Compute for the trade discount: