Excel & Business Math 41

41
Cost Side Sell Price Side

Gel Boomerangs Kite Flight

Manufactures and Distributes Boomerangs Buys Kites, Boomerangs and Toys and sells

Manufacturer or Distributor Retailers

They see everything in terms of "Cost" They see everything in terms of "Sell Price"

Cost = Wholesale Cost = $13.72 Sell Price = List Price = $24.95

Gel Boomerangs Customer Kite Flight

Many Synonyms for "Cost": Many Synonyms for "Sell Price":

Cost = Wholesale Cost = COGS = Net Cost = Wholesale Price Sell Price = List Price = Selling Price = Retail

The final "Cost" would include: The final "Sell Price" would include:
Trade Discounts, Cash Discounts, Shipping & Insurance. Markdowns or Markups
 angs and Toys and sells to Final Customer

g in terms of "Sell Price"

Final Customer

or "Sell Price":
e = Selling Price = Retail Price

e" would include:

Both Manufacturers & Retailers see "$ Markup" the same way:

Sell Price = List Price = $24.95

Cost = Wholesale Cost = $13.72

What is Markup? For One Bellen Boomerang:

Sell Price $24.95

Cost $13.72
Markup Sell Price - Cost = Markup

Many Synonyms for "Markup":

Markup = $ Markup = Margin = Gross Profit

Both Manufacturers & Retailers see "$ Markup" the same way:

Sell Price $24.95

Cost $13.72
Markup $11.23 Sell Price - Cost = Markup

Solve for Markup: Solve for Cost: Solve for Sell Price:

Sell Price $24.95 Sell Price $24.95 Sell Price

Cost $13.72 Cost Cost
Markup Markup $11.23 Markup

Markup = Sell Price - Cost Cost = Sell Price - Markup

Bellen Boomerang:

Remember, same numbers different terms:

Solve for Sell Price: Video # 37: Trade Discounts

List Price $24.95

$13.72 Wholesale Cost $13.72
$11.23 Trade Discount

Sell Price = Cost + Markup

Labels
Sell Price
$24.95
Cost
$13.72
Markup
$11.23
Both Manufacturers & Retailers see "$ Markup" the same way:

Sell Price = List Price = $24.95

Cost = Wholesale Cost = $13.72

What is Markup? For One Bellen Boomerang:

Sell Price $24.95

Cost $13.72
Markup $11.23 Sell Price - Cost = Markup

Many Synonyms for "Markup":

Markup = $ Markup = Margin = Gross Profit

Both Manufacturers & Retailers see "$ Markup" the same way:

Sell Price $24.95

Cost $13.72
Markup $11.23 Sell Price - Cost = Markup

Solve for Markup: Solve for Cost: Solve for Sell Price:

Sell Price $24.95 Sell Price $24.95 Sell Price

Cost $13.72 Cost $13.72 =H27-H29 Cost
Markup $11.23 =D27-D28 Markup $11.23 Markup

Markup = Sell Price - Cost Cost = Sell Price - Markup

Bellen Boomerang:

Remember, same numbers different terms:

Solve for Sell Price: Video # 37: Trade Discounts

$24.95 =SUM(L28:L29) List Price $24.95

$13.72 Wholesale Cost $13.72
$11.23 Trade Discount $11.23

Sell Price = Cost + Markup

Labels
Sell Price
$24.95
Cost
$13.72
Markup
$11.23
Manufacturers & Retailers see "% Markup" Differently
Gel Boomerangs thinks of everything in terms of their sell price, which is "Wholesale Cost" or "Cost"

Kite Flight sees everything in terms of their sell price, which is "List Price" or "Sell Price"

This means when they get to expressing things in Percentages, they each use a different "Base" or "Begin"

Gel Boomerangs, and most Manufacturers & Distributors, use "Cost" as the Denominator or "Begin"
This means that the % expresses everything in terms of $1 of Cost

Kite Flight, and most Retailers, use "Sell Price" as the the Denominator or "Base"
This means that the % expresses everything in terms of $1 of Sell Price

Manufacturer, Gel Boomerangs uses % Markup on Cost Recognize as Increase Problem.

Sell Price 24.95
Begin 100% Cost 13.72 Denominator
Markup
% Markup on Cost % Markup on Cost = Markup/Cost
$0.82 of Markup/$1 of Cost
The meaning: For every $1 of Cost, we a
Check: Sell Price Check the meaning with: End Part = Begi
% Sale Price on Cost Rate = End Part/Begin

Retailer, Kite Flight uses % Markup on Sell Price Recognize as a Part-Base-Rate Problem.
Base 100% Sell Price 24.95 Denominator
Cost 13.72
Markup % Markup on Sell Price = Markup/Sell Pr
% Markup on Sell Price $0.45 of Markup/$1 of Sell Price
The meaning: For every $1 of Sell Price, $
In Retail they think of it as: For every $1
Check: Markup (Part 1) Check the meaning with: Base * Associat
% Cost on Sell Price Part 2/Base
Check: Cost (Part 2) Check the meaning with: Base * Associat
 e" or "Begin"

p on Cost = Markup/Cost
Markup/$1 of Cost
ning: For every $1 of Cost, we add $0.82 of Markup to get Sell Price
e meaning with: End Part = Begin * (1+ROC)
d Part/Begin

p on Sell Price = Markup/Sell Price

Markup/$1 of Sell Price
ning: For every $1 of Sell Price, $0.45 is the Markup
hey think of it as: For every $1 into cash register: $0.45 is Markup, $0.55 is Cost
e meaning with: Base * Associated Rate 1

e meaning with: Base * Associated Rate 2

B
 Associated 0.5
Associated 0.25
Begin / Ba 0.25

Associated
Part

Associated
Begin / Base
Rate
Manufacturers & Retailers see "% Markup" Differently
Gel Boomerangs thinks of everything in terms of their sell price, which is "Wholesale Cost" or "Cost"

Kite Flight sees everything in terms of their sell price, which is "List Price" or "Sell Price"

This means when they get to expressing things in Percentages, they each use a different "Base" or "Begin"

Gel Boomerangs, and most Manufacturers & Distributors, use "Cost" as the Denominator or "Begin"
This means that the % expresses everything in terms of $1 of Cost

Kite Flight, and most Retailers, use "Sell Price" as the the Denominator or "Base"
This means that the % expresses everything in terms of $1 of Sell Price

Manufacturer, Gel Boomerangs uses % Markup on Cost Recognize as Increase Problem.

Sell Price 24.95
Begin 100% Cost 13.72 Denominator
Markup 11.23 =E17-E18
% Markup on Cost 0.818513 =E19/E18 % Markup on Cost = Markup/Cost
$0.82 of Markup/$1 of Cost
The meaning: For every $1 of Cost, we a
Check: Sell Price 24.95 =(1+E20)*E18 Check the meaning with: End Part = Begi
% Sale Price on Cost 1.818513 =E23/E18 Rate = End Part/Begin

Retailer, Kite Flight uses % Markup on Sell Price Recognize as a Part-Base-Rate Problem.
Base 100% Sell Price 24.95 Denominator
Cost 13.72
Markup 11.23 =E27-E28 % Markup on Sell Price = Markup/Sell Pr
% Markup on Sell Price 0.4501 =E29/E27 $0.45 of Markup/$1 of Sell Price
The meaning: For every $1 of Sell Price, $
In Retail they think of it as: For every $1
Check: Markup (Part 1) 11.23 =E30*E27 Check the meaning with: Base * Associat
% Cost on Sell Price 0.5499 =E28/E27 Part 2/Base
Check: Cost (Part 2) 13.72 =E34*E27 Check the meaning with: Base * Associat
 e" or "Begin"

p on Cost = Markup/Cost
Markup/$1 of Cost
ning: For every $1 of Cost, we add $0.82 of Markup to get Sell Price
e meaning with: End Part = Begin * (1+ROC)
d Part/Begin

p on Sell Price = Markup/Sell Price

Markup/$1 of Sell Price
ning: For every $1 of Sell Price, $0.45 is the Markup
hey think of it as: For every $1 into cash register: $0.45 is Markup, $0.55 is Cost
e meaning with: Base * Associated Rate 1

e meaning with: Base * Associated Rate 2

B
 Associated 0.5
Associated 0.25
Begin / Ba 0.25

Associated
Part

Associated
Begin / Base
Rate
Manufacturer, Gel Boomerangs uses % Markup on Cost

% Markup on Cost answers the question:

How much do I add to each $1 of Cost to get List Price?

Sell Price 24.95

Cost 13.72
Markup 11.23
% Markup on Cost 0.818513 =D16/D15
% Markup on Cost = Markup/Cost

Recognize as Increase Problem.

 % Markup on Cost

% Markup on Cost answers the question:

How much do I add to each $1 of Cost to get List Price?

Sell Price 24.95

Cost 13.72
Markup 11.23
% Markup on Cost 0.818513 =D57/D56
% Markup on Cost = Markup/Cost

Recognize as Increase Problem.

 Retailer, Kite Flight uses % Markup on Sell Price

% Markup on Sell Price answers the question:

How much of each $1 of Sell Price is Markup?

Sell Price 24.95

Cost 13.72
Markup 11.23
% Markup on Sell Price 0.4501 =J16/J14
% Markup on Sell Price = Markup/Sell Price

Recognize as a Part-Base-Rate Problem.

 % Markup on Sell Price

% Markup on Sell Price answers the question:

How much of each $1 of Sell Price is Markup?

Sell Price 24.95

Cost 13.72
Markup 11.23
% Markup on Sell Price 0.4501 =J57/J55
% Markup on Sell Price = Markup/Sell Price

Recognize as a Part-Base-Rate Problem.

+ $0.82
$0.45 Markup
$0.55 Cost
If the Cost of a Baseball Glove is $12.75 and the company uses a 72% Markup on Cost, what is the Sell Price?

Key: It says Markup on Cost

Cost = Denominator or Begin
Recognize as an Increase Problem

Item Baseball Glove

he Sell Price?
If the Cost of a Baseball Glove is $12.75 and the company uses a 72% Markup on Cost, what is the Sell Price?

Key: It says Markup on Cost

Cost = Denominator or Begin
Recognize as an Increase Problem

Item: Baseball Glove

Cost = 12.75 Begin
% Markup on Cost 72.00% ROC
Sell Price 21.93 =(1+B9)*B8 Meaning Method
Sell Price 21.93 =B8*(1+B9) End Part = Begin * (1+ROC)
Rate 172.00% =1+B9 Rate = 1 + ROC
Markup 9.18 =B8*B9 Change Part = Begin * ROC
Check 21.93 =B8+B13 Begin + Change Part = End Part
he Sell Price?
If the Sell Price for the TV is $799.95 and the % Markup on Sell Price is 27.5%, what was the Cost?

Key: It says Markup on Sell Price

Sell Price = Denominator = Base
Recognize as a Part-Base-Rate Problem.

Item TV
s the Cost?
If the Sell Price for the TV is $799.95 and the % Markup on Sell Price is 27.5%, what was the Cost?

Key: It says Markup on Sell Price

Sell Price = Denominator = Base
Recognize as a Part-Base-Rate Problem.

Item TV
Sell Price 799.95 Base
% Markup on Sell Price 27.50% Associated Rate 1
Cost 579.96375 =(1-B9)*B8 Part 2 = Base * Rate 2
Markup 219.98625 =B9*B8 Part 1 = Base * Rate 1
Check: Sell Price 799.95 =SUM(B10:B11) Base = Part 1 + Part 2
% Cost on Sell Price 0.725 =B10/B8 Associated Rate 2 = Part 2/Base
If the Markup for a Lego Set is $15 and the % Markup on Sell Price is 55%, what is the Sell Price?

**Note: Base = Sell Price

Recognize as Part-Base-Rate Problem

$ Markup
% Markup on Sell Price
Sell Price
Cost
% Cost on Sell Price

If the Cost for a Boomerang is $13.72 and the % Markup on Cost is 54.99%, what is the $ Markup?

**Note: Begin = Cost

Recognize as an Increase Problem

Cost
% Markup on Cost
Markup
Sell Price
% Sell Price on Cost
$ Markup?
Part 1
Rate 1
Begin = Part 1/Rate 1
Part 2 = Begin - Part 1
Rate 2 = Part 2/Begin

Begin
ROC
Change Part = Begin * ROC
End Part = Begin + Cahnge Part
Rate = End Part / Begin
If the Markup for a Lego Set is $15 and the % Markup on Sell Price is 55%, what is the Sell Price?

**Note: Base = Sell Price

Recognize as Part-Base-Rate Problem

$ Markup $15.00 Part 1

% Markup on Sell Price 55.00% Rate 1
Sell Price 27.2727272727 Begin = Part 1/Rate 1
Cost 12.2727272727 Part 2 = Begin - Part 1
% Cost on Sell Price 0.45 Rate 2 = Part 2/Begin

If the Cost for a Boomerang is $13.72 and the % Markup on Cost is 54.99%, what is the $ Markup?

**Note: Begin = Cost

Recognize as an Increase Problem

Cost 13.72 Begin

% Markup on Cost 54.99% ROC
Markup 7.544628 Change Part = Begin * ROC
Sell Price 21.264628 End Part = Begin + Cahnge Part
% Sell Price on Cost 1.5499 Rate = End Part / Begin
$ Markup?
Part 1
Rate 1
Begin = Part 1/Rate 1
Part 2 = Begin - Part 1
Rate 2 = Part 2/Begin

Begin
ROC
Change Part = Begin * ROC
End Part = Begin + Cahnge Part
Rate = End Part / Begin
If the Cost of a Chunky Soup Can is $3.75 and the company uses a 54.00% Markup on Cost, what is the Sell Price?
t is the Sell Price?
If the Cost of a Chunky Soup Can is $3.75 and the company uses a 54.00% Markup on Cost, what is the Sell Price?

Key: It says Markup on Cost

Cost = Base or Begin
Recognize as an Increase Problem

Item: Chunky Soup Can

Cost 3.75 Begin
% Markup on Cost 54.00% ROC
Sell Price 5.775 =(1+B9)*B8 Meaning Method
Sell Price 5.775 =B8*(1+B9) End Part = Begin * (1+ROC)
Rate 154.00% =1+B9 Rate = 1 + ROC
Markup 2.025 =B8*B9 Change Part = Begin * ROC
Check 5.775 =B8+B13 Begin + Change Part = End Part

Check: 0.54 =B13/B8 ROC = Change Part / Begin

t is the Sell Price?
If the Sell Price for the Toyota Camry is $23,499.99 and the % Markup on Sell Price is 21.00%, what was the Cost?
1.00%, what was the Cost?
If the Sell Price for the Toyota Camry is $23,499.99 and the % Markup on Sell Price is 21.00%, what was the Cost?

Key: It says Markup on Sell Price

Sell Price = Base or Begin
Recognize as a Part-Base-Rate Problem.

Item: Toyota Camry

Sell Price 23499.99 Base
% Markup on Sell Price 21.00% Associated Rate 1
Cost 18564.9921 =B8*(1-B9) Part 2 = Base * Rate 2
Markup 4934.9979 =B8*B9 Part 1 = Base * Rate 1
Check Sell Price 23499.99 =B11+B10 Base = Part 1 + Part 2
% Cost on Sell Price 0.79 =B10/B8 Associated Rate 2 = Part 2/Base
Markup 4934.9979 =B9*B8 Meaning Method

Check: 0.21 =B14/B8 Rate 1 = Part 1/Base

1.00%, what was the Cost?

ate 2 = Part 2/Base

If the $ Markup for a Dress Shirt is $45.00 and the % Markup on Sell Price is 35.00%, what is the Sell Price?
hat is the Sell Price?
If the $ Markup for a Dress Shirt is $45.00 and the % Markup on Sell Price is 35.00%, what is the Sell Price?

**Note: Base = Sell Price

Recognize as Part-Base-Rate Problem

Item Dress Shirt

$ Markup $45.00 Part 1
% Markup on Sell Price 35.00% Rate 1
Sell Price 128.5714285714 Begin = Part 1/Rate 1
Cost 83.5714285714 Part 2 = Begin - Part 1
% Cost on Sell Price 0.65 Rate 2 = Part 2/Begin
Check: 45 Part 1 = Begin * Rate 1
hat is the Sell Price?
If the Cost for a Boomerang is $13.72 and the % Markup on Cost is 54.99%, what is the $ Markup?
e $ Markup?
If the Cost for a Boomerang is $13.72 and the % Markup on Cost is 54.99%, what is the $ Markup?

**Note: Base / Begin = Cost

Recognize as an Increase Problem

Item Boomerang
Cost 13.72 Begin
% Markup on Cost 54.99% ROC
$ Markup 7.544628 Change Part = Begin * ROC
Sell Price 21.264628 End Part = Begin + Cahnge Part
% Sell Price on Cost 1.5499 Rate = End Part / Begin
Check: 13.72 Begin = End Part / Rate
e $ Markup?
For the Quad Boomerang, if % Markup on Cost is 100% and the Cost is $21.50, what is the Sell Price?

For the Quad Boomerang, if % Markup on Sell Price is 50% and the Cost is $21.50, what is the Sell Price?
For the Quad Boomerang, if % Markup on Cost is 100% and the Cost is $21.50, what is the Sell Price?

Type Increase Problem

Begin Cost
Item Quad
Cost 21.5 Begin
% Markup on Cost 100% ROC
$ Markup 21.5 =B7*B6 Change Part = Begin * ROC
Sell Price 43 =B8+B6 End Part = Change Part + Begin
Check 43 =B6*(1+B7) End = Begin * (1+ ROC)

For the Quad Boomerang, if % Markup on Sell Price is 50% and the Cost is $21.50, what is the Sell Price?

Type Part-Base-Rate Problem

Base Sell Price
Item Quad
Cost 21.5 Part 2
% Markup on Sell Price 50% Rate 1
% Cost on Sell Price 50% =1-B18 100% - Rate 1 = Rate 2 or 1 - Rate 1 = Rate 2
Sell Price 43 =B17/B19 Base = Part 2 / Rate 2
$ Markup 21.5 =B20*B18 Part 1 = Base * Rate 1
Check 43 =B21+B17 Base = Part 1 + Part 2
e 2 or 1 - Rate 1 = Rate 2