MARK DOWN

Markdown is a decrease in the selling price. It is difference in the old retail price and the new retail price ; that is

MD = OP – NP

Where MD = mark down

OP = old retail price

NP = new retail price

Price are sometimes marked down due to many reasons ; to face stiff competition , to encourage purchases in bulk , to dispose off old, damaged or obsolete stocks and to close a line of merchandise. The markdown per cent, %MD, is based on old price OP and is expressed as follows.

%MD = MD/OP x 100%

Example:

The markdown per cent on TV set is 10%. If the new retail price is RM900, find the old retail price.

Solution :

Let the old price be RM S.

From %MD = MD/ OP X 100%, we get

10% = K – 900/K

0.1 K = K – 900

K – 0.1 K = 900

K = RM 1000

Mark down.. Hurm... So far so good.. But sometimes it’s confusing.. I don’t really like this topic… I have to practice more.. Preparation for final exam! GO GO! I hope I will Not die because of math.. Ha ha!