In this chapter we will be calculating a final price that has gone through a number of markdowns and markups. We will show the price through each change as well as the final selling price and the markdown percent. We will use the information in PROBLEM 8-15.
First we change the way the values will appear. Go to the row number 3 and click on it. The entire row turns black except for cell A3. Next click on the CURRENCY button ($) in the TASKBAR. Click cell F3 and click on the PERCENT button (%) in the TASKBAR and INCREASE the number of decimals by 2.
In cell A1 type “Original”. In cell A2 type “Selling Price”.
In cell B1 type “First”. In cell B2 type “Markdown”.
In cell C1 type “Second”. In cell C2 type “Markdown”.
In cell E1 type “Final”. In cell E2 type “Markdown”.
In cell F1 type “Markdown”. In cell F2 type “Percentage”.
In cell D2 type “Markup”.
You should now adjust your columns by using the FORMAT menu and COLUMN choice as you did before.
Your spreadsheet should look like this:
In cell A3 enter the figure $5,000.
Enter the formulas keeping in mind you must subtract or add the percentages given from 100% depending on if it is a markdown or a markup. In cell B4 enter the formula that will take the value of B3 (it is a markdown), and multiply by A3.
In cell C4 enter the formula that will take the value of C3, (it is a markdown), and multiply by B4.
In cell D4 enter the formula that will take the value of D3, (it is a markup), and multiply by C4.
In cell E4 enter the formula that will take the value of E3, (it is a markdown), and multiply by D4.
Remember that the markdown % formula is: markdown % = $markdown ÷ original price
As the formulas should calculate and you will find the totals will be:
$4,000 for first markdown; $3,600 for second markdown; $4,032 for the markup; $3830.40 for the final markdown; and 23.39% for final percentage.
PROBLEM: Your boss put you in charge of changing the price each time a new markdown is taken. You need to keep track of each price change and what the final percentage will be. The original selling price is $300.00. In excel with formulas
Markdowns: First is 5%, Second is 12%, Markup is 3%, and the Final is 18%.
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