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Originally Posted by michelle19
Hello,
I have started studying for the Marketing CLEP which I will take in July. I think I'm making more out of the markup questions as it should be fairly simple to figure out. I see there are different ways of calculating selling price and cost. For example, if I want to calculate the cost of a new table I just purchased and know the retail selling price was $1,000, and the markup percentage on the selling price is 60% - how would I determine the cost?
Is there an easy formula(s) on how to calculate these and are there many of these questions on the actual CLEP (if you've had exposure to it)?
Thank you in advance.
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Hi Michelle19,
Welcome to the group.
Please don't stress out about the markup/markdown questions on the marketing exam. There will only be a handful of them, and they are ALL easily calculated in your head. You won't get ANY question that requires serious math skills or the use of a calculator. I promise!
Examples:
Question:
If the wholesale price for a product is $100, and the item sells at retail for $150, what is the retail markup percentage?
Answer:
The amount of markup was $50.
What percent of $100 is $50?
$50 equals 50% of $100.
So the markup percentage = 50%
Question:
If the retail price for a product is $1500 and the markup was 50%. What was the wholesale price of the product?
Answer: (X + 50% = $1500)
What amount, when you add 50% to it, will equal $1500?
$1000 + 50% = $1000....$1000 + $500 = $1500.
So the wholesale price = $1000
Question:
If a product originally selling for $35.00 is marked down by 10%, what is the discounted retail selling price?
Answer:
What is 10% of $35?
10% of $35 = $3.50
$35 - $3.50 = $31.50
So the discounted retail selling price = $31.50
You will not find ANYTHING more difficult than that on the exam Michelle. If the average person cannot work the answer out quickly and in their head....it won't be on the exam. They will always ask questions where either the amount or the percentage will be easy to calculate (as long as you know the concept).
Hope that helps,
Snazzlefrag