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 = ?