Module 3 abm02 ppt
- 1. Margin/ Gross Margin ๏ท the ratio of mark-up to the selling price.
- 2. FORMULA GROSS MARGIN = ๐ด๐๐๐โ๐๐ ๐บ๐๐๐๐๐๐ ๐ท๐๐๐๐ EXAMPLE 1. SINCE THE MARK UP AND SELLING PRICE OF THE SHOE SPRAY ARE COMPUTED AS P50.00 AND P112.50, WE HAVE: GROSS MARGIN = ๐ด๐๐๐โ๐๐ ๐บ๐๐๐๐๐๐ ๐ท๐๐๐๐ GROSS MARGIN = ๐ท๐๐.๐๐ ๐ท๐๐๐.๐๐ GROSS MARGIN = 0.44 OR 44%
- 3. MARKDOWN IS A REDUCTION IN THE SELLING PRICE OF MERCHANDISE. STEPS TO COMPUTE SALE PRICE 1. MULTIPLY THE RATE OF MARKDOWN TO THE SELLING PRICE TO GET THE MARKDOWN. MARKDOWN = RATE OF MARKUP X SELLING PRICE 2. SUBTRACT THE MARKDOWN FROM THE SELLING PRICE TO GET THE SALE PRICE. SALE PRICE = SELLING PRICE โ MARKDOWN SOLUTION: COMPUTE THE MARKUP FIRST. MARKDOWN = RATE OF MARKUP X SELLING PRICE MD = 0.35 X P800.00 MD = P280.00 DETERMINE THE SELLING PRICE SALE PRICE = SELLING PRICE - MARKDOWN SALE PRICE = P800.00 โ P280.00 SALE PRICE = P520.00 THE SALE PRICE OF THE SWEATER IS P520.00.
- 4. EXAMPLE: โข A BICYCLE IS ORIGINALLY SOLD FOR P5,600 AND IS MARKED DOWN TO SELL FOR P3,920. FIND THE MARKDOWN AND THE MARKDOWN RATE. Solution: The selling price and the sale price are given. So, Sale Price = Selling Price โ Markdown P3,290.00 = P5,600.00 โ Markdown Markdown = P1,680.00 To find the rate of markdown, we must divide the markdown by the selling price. Markdown = Rate of Markdown x Selling Price P1,680 = Rate of Markdown x P5,600.00 ๐ท๐,๐๐๐ ๐ท๐,๐๐๐ = Rate of Markdown Rate of Markdown = 0.30 or 30% The markdown is P1,680 and the markdown rate is 30%.
- 5. THANK YOU STUDENTS FOR YOUR PARTICIPATION. GODBLESS AND KEEP SAFE!