# CTE Resource Center - Verso - Fashion Marketing Task 2056556729

# 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?

## 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.

## 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.