CALCULATING A SALES MARKUP LESSON PLAN
What is a sales mark up?
When a store purchases an item they buy it for a particular price. When they sell it in the store, they mark up the price so that they make a profit.
Prices are often marked up a specific percentage.
How can we calculate a sales mark up?
A sales mark up is calculated when the store decides how much they want to sell a product for. Let’s look at an example to better understand how this works.
The local corner store bought fountain pens for $3.00 each. They want to sell the pens for a 15% mark up. How much did they sell each pen for in the store?
To figure this out, we want to find the percent of a number. The percent of a number is calculated using multiplication. Our key word “of” lets us know that the operation is multiplication.
If we multiply the price that the store bought the item for times the percentage, we will have the amount that the store is going to mark up the price.
Store purchase price x % of mark up = amount of mark up
Let’s do this work with the last example.
Lesson Printable Materials -
Print out the teaching lesson pages and
exercise worksheets for
use with this lesson:
Back to more Money Math Lessons, Lesson Plans, Worksheets
To teach and learn money skills, personal finance, money management, business,
careers, and life skills please go to the Money
Instructor home page.