Fax Mark Formula with airSlate SignNow

Fax mark formula

[Music] hello everyone and welcome to esip nyan your math guy through senior high school so for today's video we're going to be discussing markup mark on and mark down but of course before anything else please don't forget to like and subscribe esip nayan so that you'll be notified with our new videos so hopefully at the end of this lesson you will be able to differentiate and as well illustrate mark on markdown and markup but before that let us determine the terms to remember now we have the selling price which is the amount at which the product is to be sold and as well as the cost price which involves the fixed cost and as well as the variable cost let's move on to markup we define markup as the difference between the selling price and the cost price and it is computed based on the mark of percentage so we have here the common formulas that we need to determine our markup amount so we have markup amount is equal to the selling price minus the host price or the markup amount is equal to the markup percent multiplied by the host price so these are the two formulas that we can use to determine our markup and also we have our markup percentage and a markup percentage is a percentage of the cost price that the company wanted to add to determine the selling price of the product so the mark of percent is equal to 100 multiplied by the markup amount over the cost price so for example we have this example how much must the selling price of a monoblock table with a cost price of 525 pesos if the desired markup percentage is 28 so what we have to do is to determine what is given we are given with the cost price which is equal to 525 pesos as well as the markup percentage which is 28 percent so here we are to find the selling price of our monoblock table okay so now that we know what is given as well as what is missing let us try to determine what formula do we have to use so since we are given with the horse price and as well as the mark of percentage we can use the formula markup is equal to the markup percentage multiplied by the host now using this formula we can substitute whatever is given we have markup is equal to 0.28 times 525 so please take note instead of using 28 i use its decimal equivalent which is 0.28 so our markup is equal to 147 pesos now using our markup we can determine our selling price since we know that the markup is given as the markup is equal to the selling price minus the cost we can use this formula to determine to determine our selling price so substituting what is given we have 147 is equal to the selling price minus 525 now to solve for p we can transpose negative 525 to the other side of the equation therefore we have 147 plus 525 equal to sp simplifying this equation we have sp is equal to 672. now that we have simplified this we have gotten the selling price of our monoblock table which is 672 pesos for example number two how much was the cost price of a backpack sold for 381.90 pesos if the mark of percentage is 34 we are given with the selling price which is equal to 381.90 pesos and the mark of percentage which is equal to 34 and we are to find the cost price of the backpack sold and so given that we only have the selling price and our markup percentage we can use the formula of getting the mark up okay the markup is equal to the markup percentage times the cost now we can use this by substituting what is given we have markup is equal to 0.34 times c now we know that this is the temporary value for markup we can use another formula in getting the cost so the other formula is markup is equal to the selling price minus the cost now substituting what the value of markup is here we have 0.34 c is equal to the selling price minus the cost simplifying this or combining our like terms by transposing c to the other side we have 0.34 c plus c is equal to our selling price so since this are common terms because they both have the same variables which is c we can add them together so 0.34 c plus c is 1.34 c and then we have the selling price which we can also determine as 381.9 dividing both sides by 1.34 we can cancel this one then c is equal to [Music] 285 pesos so the cost of the backpack is 285 pesos now let us proceed to our mark on a mark on is a temporary markup on a certain product so it depends on the occasion if we are to have a mark on so the difference between a mark on and a markup is that a markup is an additional value to our cost but a mark on is another additional value to the current selling price so there is an increase in selling price with our mark on because it is on high demand so the following are our formulas for mark on we have the mark on amount which is equal to the new selling price minus the current selling price and the mark on amount could be equal to the mark on percent times the current selling price okay so let us move on to our example if a fast selling item in a department store is currently being sold for 675.35 pesos because of a high demand for the item the store decided to apply a mark on percentage of 22 find the new selling price so we have here the current selling price which is equal to 675.35 and we have also our mark on percentage which is equal to 22 now to determine our new selling price we make use of our formula for the mark on we we know that mark on is equal to the mark on percentage times the current selling price so substituting all of our values we have the mark on is equal to 0.22 times 675.35 and simplifying this one we know that our mark on is equal to 148.14 now that we have our mark on we can determine our new selling price by utilizing the other formula we have our mark on is equal to the new selling price minus the current selling price so substituting what is given we have 148.14 is equal to the new selling price minus 675.35 and transposing this one to the other side we have 148.14 plus 675.35 is equal to the new selling price now simplifying this one we have 823.93 as our new selling price as for the markdown a markdown is defined as the reduction in the selling price of the merchandise so a cost of a markdown may be some products are slow to be sold or a markdown may also be used if there are competitors in the business now to determine a markdown amount it could be equal to the current selling price minus the new selling price or a marked down percent multiplied by the current selling price now let us use this for example how much markdown percentage was applied to a jacket whose previous price of 798 is now sold for 654.36 now it is obvious here that the old selling price or the current selling price is equal to 798 while the new selling price is 654 now to determine our markdown percentage we need to first identify what is our markdown so the markdown is determined as the markdown equal to the current selling price minus the new selling price now mark down is equal to 798 minus 654 0.36 and then simplifying this one we have 143.64 now that we know our markdown let us use it to determine our markdown percentage so we know that another formula for the markdown is equal to the markdown percentage multiplied by the current selling price now our markdown is 143.6 equal to the markdown percentage multiplied by 798. now to isolate our markdown percentage we divide both sides by 798 now simplifying our equation we have 18 as our markdown percentage now for another example regarding markdown we find the previous selling price of a shirt which now sells at 219 pesos which is given a markdown percentage of 27 so we have here the new selling price which is 219 and we also have the markdown percentage which is equal to 27 now to determine our previous selling price we make use of our formula which is the markdown is equal to the markdown percent times the current selling price so we have here md is equal to 0.27 times the current selling price so since we don't know much of the values we make use of another formula we have here the markdown is equal to the current selling price minus the new selling price and substituting what we have right here we have 0.27 times the current selling price is equal to the current selling price minus 219 now combining like terms which we have here the same variables we transpose 219 to the other side of the equation as well as 0.27 spc to the other side of the equation we have 219 is equal to the current selling price [Music] minus 0.20 multiplied with the current selling price now simplifying this we have 219 is equal to 0.73 times the current selling price now to isolate this one this variable we divide both sides by 0.73 simplifying our equation we have 300 which is our current selling price or our previous selling price now let us define what is a margin so a margin is defined as the difference between the selling price and the host price you may be familiar with the term the difference between the selling price and the host price because it's very similar to getting a profit but there is a difference between the gross margin and a profit margin even though if they have an equal value so a gross margin is based always on the selling price of the product rather than the horse if we talk about a profit margin it will always be based on the cost price and again a gross margin will be based on our selling price so a gross margin per cent is equal to the margin amount over the selling price multiplied by 100 so let us determine the difference between a markup percentage and a gross margin of our rubber shoes with a cost price of 1765 and a selling price of 2153.33 so if we are to compare it let's write here the mark of percentage and here we have the gross margin percentage now for us to determine the markup percentage let us first determine what is our markup our markup would be equal to the selling price minus the cost and to determine that let us substitute our values we have the markup is equal to 2153.33 1765 now now that we have our markup which is equal to 388.33 let us use the mark of percentage formula which is the markup percentage is equal to 100 times the markup amount over our cost now that we have those values and let us try to substitute we have 388.33 over 1765 now simplifying this we have a mark of percentage which is 22 now if you are talking about the gross margin we still need our markup amount and we can determine that by the selling price minus the cost which we know to be 2153.33 minus 1 765 and simplifying this we know that the markup is 388.33 so as you can notice it is the same markup but it differs in our gross margin our gross margin can be seen as so our gross margin percentage is solved as 100 multiplied by the markup amount which is 388.33 but divided by our selling price which is 2153.33 so our gross margin is equal to 18.03 so this is the difference between a markup percentage and a gross margin percentage again a markup will always be based on the cost and the gross margin will be based on our selling price so i hope that you learned a lot for today's video and please don't forget to like and subscribe to esip nayan and see you in our next video