MARK-DOWN

Compute the mark down

Do they think that running a business is an easy task?
DISCOUNTED PRICE or what is commonly known as the SALE PRICE.

MARK-DOWN: the difference between the REGULAR SELLING PRICE

and the SALE PRICE
MARK-DOWN = SELLING PRICE – SALE PRICE
MD = S – SP
where MD = Mark-Down
S = Selling Price
SP = Sale Price
other reasons:
• the item is a perishable item and it is best to dispose of it sooner than
simply throw it away
• the item has become dirty or worn out, or possibly out of style
• competition forces the marking down of an item

Remember that rates of mark-downs

are always computed based on the
selling price.
When an item is given a selling price where the profit ends up being
zero, this is said to be the BREAK-EVEN PRICE. In this case, the selling
price is simply equal to the total of the cost price and the operating
expenses:
Break-Even Price = Cost Price + Operating Cost BEP = C + E where BEP =
Break-Even Price C = Cost Price E = Operating Expenses
EXAMPLE 1
Carlo was able to buy a pair of shoes regularly priced at PhP3,500 for
only PhP2,100. a. What was the amount of the mark-down? b. What
was the rate of the mark-down?
EXAMPLE 2
During a Midnight Madness Sale, a board game regularly priced at
PhP8,500 was sold at 55% discount. The cost of the board game is
PhP3,450 and expenses are 14% of the regular selling price.
a. What was the amount of the mark-down?
b. What was the rate of the mark-down?
EXAMPLE 3
Super Mall paid PhP15,000 for a set of dishes. Expenses are 18% of the
selling price while the required profit is 15% of the selling price. During
an inventory sale, the set of dishes was marked down by 30%.
a. What was the regular selling price?
b. What was the sale price?
c. What was the profit or loss?
1. I am waiting for a pair of sunglasses currently priced at PhP1250 to
be sold at a sale price of PhP875. What rate of mark-down will be
necessary for this to happen?
2. The Cellphone Company buys iPhones at PhP24,000. Expenses are
set at 17% of the selling price and the required profit is set at 20% of
the selling price. During a weekend sale, the iPhone is sold at 10%
discount.
A. What is the regular selling price of the iPhone?
B. What is the sale price of the iPhone?
C. How much did The Cellphone Company gain or lose when the iPhone
was sold during the weekend sale?