Scribd
Upload
274 views10 pages

Mark On and Markdown

Mark-on refers to the increased price charged for goods or services during peak periods of high demand. It is calculated as the peak selling price minus the regular selling price. Mark-down refers to the difference between the original selling price and discounted sale price of an item. It is used when clearing old or damaged stock. Both mark-on and mark-down rates can be expressed as a percentage of the original or discounted price. Examples are provided to demonstrate calculating mark-on, mark-down, and their corresponding rates.

Uploaded by

alexapatriciamae so
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
274 views10 pages

Mark On and Markdown

Mark-on refers to the increased price charged for goods or services during peak periods of high demand. It is calculated as the peak selling price minus the regular selling price. Mark-down refers to the difference between the original selling price and discounted sale price of an item. It is used when clearing old or damaged stock. Both mark-on and mark-down rates can be expressed as a percentage of the original or discounted price. Examples are provided to demonstrate calculating mark-on, mark-down, and their corresponding rates.

Uploaded by

alexapatriciamae so
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

MARK-ON

It is the added amount to the selling price


during the peak season or when there is
a high demand of the commodities or
services.

PEAK SELLING PRICE – the higher selling


price when there is a high demands of
goods/commodities to consume.

MARK-ON = Peak Selling Price – Regular


Selling Price
EXAMPLES:

1. Aling Flor observes that most of the


buyers prefer to buy fish rather than meat
during the Lenten Season. She then
decides to increase the price of bangus by
Ph15.00 per kilo due to the demand and
the increase in the cost from the
distributor. If the selling price is Ph95.00,
how much is the peak selling price and the
rate on mark-on?
SOLUTION:

a. Peak selling price = Regular selling price


+ mark –on
= Ph95.00 + Ph15.00
= Ph110.00
The peak selling price for every kilo of fish
is Ph110.00

b. Rate of Mark-on = = 15.79%


2. During Christmas season, the imposed
rate of mark-on is 20% of the selling price
of each Christmas lantern. If each lantern
costs Ph600.00 find the peak selling
price and the mark-on.

SOLUTION:

a. Mark-on is 20% of the selling price.


Mark-on = 0.20 x Ph600.00
= Ph120.00
The mark-on is Ph120.00.
b. Peak Selling Price = Regular selling
price + Mark-on

= Ph600.00 + Ph120.00
= Ph720.00

The peak selling price is Ph720.00


during Christmas season.
MARK-DOWN
It is the difference between the selling
price and the sale price.
SALE PRICE – It is the discounted price
usually offered if the store disposes of its
perishable items and old stocks, if there is
a damage in an item, and if it wants to
compete with stores.
MARK-DOWN = Selling Price – Sale Price
Not all businesses earn positively. If there
is no profit then it is considered to be a
LOSS.
EXAMPLE
1. Angelo was able to buy a book regularly priced at
Ph480.00 for only Ph360.00
a. What was the amount of the mark-down?
b. What was the rate of the mark-down?

Solution
a. Mark-down = Selling Price – Sale Price
=Ph480.00 – Ph360.00
= Ph120.00
The mark-down price is Ph120.00

b. Rate of Mark-down = 25%


The rate of mark-down is 25%
Markdown

If an item selling for ₱450 is marked to


sell at ₱400, the markdown is the
difference between the original or and
the new selling price

Markdown = Old selling price – New selling


price
= ₱450 – ₱400
= ₱50
Markdown

  markdown rate is generally expressed as


The

a percent of the new reduced price; hence,


the new reduced price is the base:

Old selling price ₱450 112.5%


12.5%
New reduced selling price ₱400 100%
Markdown ₱ 50

Markdown rate
Markdown

The  markdown rate can also be expressed as a


percent of the old selling price; hence, the old


selling price is the base:

Old selling price ₱450 100%


New reduced selling price ₱400 11.11%
88.89%
Markdown ₱ 50

Markdown rate

You might also like