BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Determine the markdown. Divide the difference between the prices by the actual selling price. Then, multiply this result by 100. The result represents the markdown percentage.

Detailed explanation-2: -RICS and most of the retail industry define the “Markdown %” as “Markdown dollars divided by Sales.” The Markdown % is calculated as the dollar markdown divided by the NET retail sales price (times 100). For example, an item selling for $30 is marked down and sold for $24. The Markdown % is 25% ($6.00/$24.00).

Detailed explanation-3: -The markup rate is the percent increase in the price, and the markdown rate (discount rate) is the percent decrease in the price. Most markup problems can be solved by the equation: (Selling Price) = (1 + m)(Whole), where m is the markup rate, and the whole is the original price.

Detailed explanation-4: -Markdown is the reduction of a product’s selling price. Markdown is applied to a product to reduce its price, while markup is applied to increase the price. Markup and markdown are used by retailers to adjust prices according to the market conditions and to maximize profit margins.