BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is the markdown price formula? To compute markdown given the original price and the new price, you need to apply the formula: Markdown = Original price-Actual price . For instance, if the original price was $100 and the price the good is actually sold for is $80, then the markdown equals $20.

Detailed explanation-2: -While discounts are temporary, markdowns are permanent price reductions. An example of a markdown would be if you bought a pair of sunglasses for $5 and set the retail price at $15. It turns out sales of the sunglasses are slow after a few months, so you mark down the price to $10.

Detailed explanation-3: -Two-step method: First, multiply the cost (this time it is the cost to buy the item from the company) by the rate to get the markdown amount. Second, subtract the markdown amount from the cost. 2. c−m=S c − m = S .