Markdown


Definition:

MARKDOWN (MD) — we define it as the difference between original selling price (OSP) and the new selling price (NSP).
The formula is written this way,

MD = OSP – NSP

NOTE:
We could also solve for markdown by multiplying the original selling price and the markdown rate.
The formula is written as follows:

MD = OSP * MDR
where
MD = markdown
OSP = original selling price
MDR = markdown rate

EXAMPLE 1: If OSP = Php48,750 and MDR = 18%, (a) what is the markdown? (b) what is the new selling price?

SOLUTION:

(a)
MD = OSP * MDR
MD = 48,750 * 0.18
MD = Php8,775

(b)
MD = OSP – NSP
NSP = OSP – MD
NSP = 48,750 – 8,775
NSP = Php39,975

TRY THIS:
1)
OSP = Php55,985
NSP = Php47,587.25
MD = ?
MDR = ?

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