\ Multiply the original price by the percentage to find the markdown.

Item 6
DIRECTIONS: Use this information to answer Parts A, B, C, D, E, F, and G.

A convenience store sells prepaid mobile phones. It purchases them for $12 each and uses a markup rate of 250%.

Question 1
Part A

What is the markup rate in decimal form?

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Markup rate:
a
Question 2
Part B

The markup rate is the constant of proportionality in the equation y=kx. Write an equation that can be used to find the markup on the cost x of a phone.

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Equation:
$\Sigma$
$x$$y$
Question 3
Part C

Using the equation, calculate the markup amount.

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Markup amount: $
Question 4
Part D

What is the retail price of a phone?

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Retail price: $

Question 5
Part E

Next week the store is going to reduce the price to $31.50. Calculate what percent the sale price is of the retail price.

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%
Question 6
Part F

Think of the retail price of the phone as 100%. How does the sale price compare to the retail price? What does this tell you about the markdown rate?

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The sale price is
% less than the retail price. The markdown rate is
%.
Question 7
Part G

What is an equation in the form y=kx that relates the sale price to the retail price x?

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Equation:
$\Sigma$