Math 7 · Unit 2, Lesson 4: Sales and Markups · Tile 2 of 3
Markups
What the store adds on
A store buys things for one price and sells them for more. The amount it adds on is the markup.
A hoodie, marked up 45 percent
A store buys a hoodie for $20 and marks it up 45 percent. The markup is 45 percent of $20, which is $9, so the hoodie sells for $29. One step: 20 times 1.45 is $29.
Compare it with tax: both add a percent on top, so both multiply by more than 1. Tax goes to the government; a markup stays with the store.
The selling price is the cost multiplied by 1 plus the markup rate.
The store adds 45 percent to what it paid. Multiply by 1.45.
Up or down? Pick the multiplier
Every change in this unit is one multiplier. Adding on: 1 plus the rate. Taking off: 1 minus the rate. Times a number bigger than 1 makes it bigger. Times a number smaller than 1 makes it smaller. Times 1 keeps it the same.
NC standards: NC.7.RP.3.