Chapter 8 - Markups and markdowns: Perishables and breakeven analysis. After you have mastered the material in this chapter, you will be able to: Calculate dollar markup and percent markup on cost, calculate selling price when you know cost and percent markup on cost, calculate cost when dollar markup at percent markup on cost are known, calculate cost when you know the selling price and percent markup on cost. | Chapter 8 Markups and Markdowns: Perishables and Breakeven Analysis Calculate dollar markup and percent markup on cost Calculate selling price when you know cost and percent markup on cost Calculate cost when dollar markup at percent markup on cost are known Calculate cost when you know the selling price and percent markup on cost Markups and Markdowns; Perishables and Breakeven Analysis #8 Learning Unit Objectives Markup Based on Cost (100%) Calculate dollar markup and percent markup on selling price Calculate selling price when dollar markup and percent markup on selling price are known Calculate selling price when cost and percent markup on selling price are known Calculate cost when selling price and percent markup on selling price are known Convert from percent markup on cost to percent markup on selling price and vice versa #8 Learning Unit Objectives Markup Based on Selling Price (100%) Markups and Markdowns; Perishables and Breakeven Analysis . | Chapter 8 Markups and Markdowns: Perishables and Breakeven Analysis Calculate dollar markup and percent markup on cost Calculate selling price when you know cost and percent markup on cost Calculate cost when dollar markup at percent markup on cost are known Calculate cost when you know the selling price and percent markup on cost Markups and Markdowns; Perishables and Breakeven Analysis #8 Learning Unit Objectives Markup Based on Cost (100%) Calculate dollar markup and percent markup on selling price Calculate selling price when dollar markup and percent markup on selling price are known Calculate selling price when cost and percent markup on selling price are known Calculate cost when selling price and percent markup on selling price are known Convert from percent markup on cost to percent markup on selling price and vice versa #8 Learning Unit Objectives Markup Based on Selling Price (100%) Markups and Markdowns; Perishables and Breakeven Analysis Calculate markdowns; compare markdowns and markups Price perishable items to cover spoilage loss #8 Learning Unit Objectives Markdowns and Perishables Markups and Markdowns; Perishables and Breakeven Analysis Calculating Contribution Margin (CM) Calculating a Breakeven Point (BE) #8 Learning Unit Objectives Breakeven Analysis Markups and Markdowns; Perishables and Breakeven Analysis Terminology Selling Price - The price retailers charge customers Cost - The price retailers pay to a manufacturer or supplier Markup, margin, or gross profit - The difference between the cost of bringing the goods into the store and the selling price Operating expenses or overhead - The regular expenses of doing business such as rent, wages, utilities, etc. Net profit or net income - The profit remaining after subtracting the cost of bringing the goods into the store and the operating expenses Basic Selling Price Formula Selling price (S) = Cost (C) + Markup (M) $23 Jean $18 - Price paid to
