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Pricing Math

Pricing Math. Activity # 1:. Explain how markup is calculated for your company. Basic Markup Calculations. Markup is the amount of profit that a business makes off a product after the cost of producing the product is subtracted from the total cost. Markup Equation:

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Pricing Math

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  1. Pricing Math

  2. Activity # 1: Explain how markup is calculated for your company.

  3. Basic Markup Calculations • Markup is the amount of profit that a business makes off a product after the cost of producing the product is subtracted from the total cost. • Markup Equation: • Cost (C) + Markup (MU) = Real Price (RP)

  4. Activity # 2 Identify and describe the various discounts (markdowns) offered to your employees and customers.

  5. Discounts • Employee Discounts: These are discounts given to the employee in order to encourage the employee to spend money in the store. • Discounts from Manufacturers and Distributors Include: • Cash Discounts • Trade Discounts • Quantity Discounts • Promotional Discounts • Seasonal Discounts

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