Calculating Selling Price: A Comprehensive Guide

Understanding how to calculate the selling price after a markup and discount is a crucial skill for any trader or retailer. Let's break down the process with various examples and step-by-step calculations.

Example 1: Markup and Discount Calculation

In the first scenario, a trader marks up his goods by 120% and then offers a 30% discount. If the cost price (CP) is Rs 750, what will be the selling price (SP)?

Step-by-Step Calculation:

Calculate the Marked Price (MP): The cost price (CP) is Rs 750. The markup is 120% of the cost price. Markup amount CP × (120/100) 750 × 1.2 900 Rs. Marked Price (MP) CP Markup 750 900 1650 Rs. Calculate the Discount: The discount is 30% of the marked price. Discount amount MP × (30/100) 1650 × 0.3 495 Rs. Calculate the Selling Price (SP): Selling Price (SP) MP - Discount 1650 - 495 1155 Rs.

Therefore, the selling price is Rs 1155.

Additional Examples

Example 2: Simplified Markup and Discount Calculation

Another scenario involves a trader selling goods with a cost price (CP) of Rs 800, marking them up by 150%, and offering a 40% discount. What is the final selling price?

Marked Price (MP) CP (150/100 × CP) 800 (150/100 × 800) 1200 Rs. Discount amount MP × (40/100) 1200 × 0.4 480 Rs. Selling Price (SP) MP - Discount 1200 - 480 720 Rs.

Example 3: Advanced Markup and Discount Calculation

A shopkeeper marks goods up by 25% and then offers a 25% discount. If the cost price (CP) is Rs 10, what will be the selling price?

Let M be the marked price and S be the selling price. M CP (125/100 × CP) 10 (125/100 × 10) 225 × 10/100 22.5 × 10 225 Rs. S M - (25/100 × M) 225 - (25/100 × 225) 225 - 56.25 168.75 Rs. If CP Rs 640, then S 168.75 × 640/100 1080 Rs.

Example 4: Markup and Loss Calculation

A trader marks his goods up by 25% and offers a 25% discount. The cost price is Rs 640. Calculate the selling price.

Marked price (MP) CP (25/100 × CP) 640 (25/100 × 640) 640 160 800 Rs. Selling price (SP) MP - (25/100 × MP) 800 - (25/100 × 800) 800 - 200 600 Rs.

Example 5: Basic Markup and Discount Calculation

If the cost price (CP) is Rs 10, a goods trader marks them up by 120% and then offers a 30% discount. What will be the selling price?

Marked price (MP) CP (120/100 × CP) 10 (120/100 × 10) 10 12 22 Rs. Discount MP × (30/100) 22 × 0.3 6.60 Rs. Selling price (SP) MP - Discount 22 - 6.60 15.40 Rs. If the CP is scaled to Rs 750, SP CP (120/100 × CP) - (30/100 × (CP (120/100 × CP)) 750 (120/100 × 750) - (30/100 × (750 (120/100 × 750)) 750 900 - (30/100 × 1650) 1650 - 495 1155 Rs.

Through these examples, we can see that the accuracy and consistency in the calculation of marked price and discount play a pivotal role in determining the final selling price. Each step involves understanding the initial cost price, the mark-up percentage, and the discount percentage to apply to the final calculations.

Conclusion

By mastering the concepts of markup and discount, traders and retailers can better manage their pricing strategies, ensuring profitability while remaining competitive. The formulas and methods provided can be adapted to different scenarios and situations, making them invaluable tools for any business.

For further reading and deeper understanding, explore resources that discuss advanced pricing strategies and how to optimize them for different market conditions.