# CTE Resource Center - Verso - Fashion Marketing Task 2056556729

CTE Resource Center - Verso

Virginia’s CTE Resource Center

Calculate retail price.

Definition

Calculation 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.

Process/Skill Questions

  • 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

Mathematics

A.1

The student will
  1. represent verbal quantitative situations algebraically; and
  2. evaluate algebraic expressions for given replacement values of the variables.

A.4

The student will solve
  1. multistep linear and quadratic equations in one variables algebraically;
  2. quadratic equations in one variables algebraically;
  3. literal equations for a specified variable;
  4. systems of two linear equations in two variables algebraically and graphically; and
  5. practical problems involving equations and systems of equations.

Other Related Standards

Economics and Personal Finance Standards of Learning

EPF.3

The student will demonstrate knowledge of the price system by
  1. examining the laws of supply and demand and the determinants of each;
  2. explaining how the interaction of supply and demand determines equilibrium price;
  3. describing the elasticity of supply and demand; and
  4. examining the purposes and implications of price ceilings and price floors.

National MBAResearch Standards-Business Administration

Analyze cost/profit relationships to guide business decision-making.

 

National MBAResearch Standards-Marketing

Develop a foundational knowledge of pricing to understand its role in marketing.