Calculate retail price.
DefinitionCalculation should include elements of the retail price (i.e., cost of goods sold, gross margin, operating expenses), using the formula of cost + margin = retail price.
- How does markup affect the selling price?
- What is meant by the term keystone markup? Why is it an important concept in the fashion industry?
- Who is responsible for determining the retail price?
- What is the difference in retail-price calculation when using the cost method vs. the retail method?
- In calculating retail price, what expenses would be included in cost?
- What is demand-oriented pricing?
- What are operating expenses, and how do they affect the selling price (i.e., retail price) of an item?
- What was the price of a fashion product you recently purchased? If the retailer used keystone markup, what would the cost (i.e., wholesale price) have been to the retailer?
Related Standards of Learning
The student will
- represent verbal quantitative situations algebraically; and
- evaluate algebraic expressions for given replacement values of the variables.
The student will solve
- multistep linear and quadratic equations in one variables algebraically;
- quadratic equations in one variables algebraically;
- literal equations for a specified variable;
- systems of two linear equations in two variables algebraically and graphically; and
- practical problems involving equations and systems of equations.
Other Related Standards
Economics and Personal Finance Standards of Learning
The student will demonstrate knowledge of the price system by
- examining the laws of supply and demand and the determinants of each;
- explaining how the interaction of supply and demand determines equilibrium price;
- describing the elasticity of supply and demand; and
- examining the purposes and implications of price ceilings and price floors.