Marketing Essentials

Section 1: Calculating Prices

After You Read Online Action

Key Terms and Concepts

1. Margin is the same as markup.
2. Cost method: Step 1) Determine the dollar markup on cost by multiplying the cost by the percentage markup on cost in decimal form. Step 2) Add the dollar markup to the cost to get the retail price.
3. When no markdowns are taken the initial markup and the maintained markup are the same.

Academic Skills

4. $139; $89 + $50 = $139
5. Reports may conclude that prescription drugs are less expensive in Canada than they are in the United States. Students may include the fact that many U.S. citizens are purchasing their prescription drugs from Canada because of the lower prices and that the U.S. government is checking into that practice.