Markup and Discount NS 1 4 Calculate given

Markup and Discount NS 1. 4 Calculate given percentages of quantities and solve problems involving discounts at sales, interest earned, and tips. Objective: -Students will calculate give percentages and find discounts, markups, tips, and sales tax by scoring an 80% proficiency on a quiz.

Terminology Cost - The price retailers pay to a manufacturer Markup, margin, or gross profit - The difference between the cost of bringing the goods into the store and the selling price Selling Price - The price retailers charge customers Operating expenses or overhead - The regular expenses of doing business such as rent, wages, utilities, etc. Net profit or net income - The profit remaining after subtracting the cost of bringing the goods into the store and the operating expenses

Copy these Steps: Finding Discounts Finding Markups w Step 1: Find the amount of the discount (the percent) w Step 2: Turn the percent into a decimal and Multiply it by the original price w Step 3: Subtract the discount amount to the original price. w Step 1: Find the amount of the markup (the percent) w Step 2: Turn the percent into a decimal and Multiply it by the original price w Step 3: Add the markup amount to the original price.

Markup and Discount w Markup and Discount are like tax, commission, and tip questions. w You can… 1) Change the percent to a decimal and multiply. 2) Write an equation to find the missing percent. 3) Write a proportion like percent problems

Basic Selling Price Formula Selling price (S) = Cost (C) + Markup (M) $1, 200 Computer $900 - Price paid to bring computer into store $300 Dollars to cover expenses and profit

Markup vs. Discount w Markup w Discount A retail store buys When an item is on items at wholesale, the store is prices. To cover selling the item for expenses and make a less, so this is called profit, the sells items discount. at higher retail prices. The extra amount is called the markup

Discount You buy a pair of jeans that is 30% off the original price of $29. What is the sale price of an item? Ex 1: w Find the amount of the discount: 30% of $29 0. 3 x 29 8. 7 Subtract the discount from the original price 29 - 8. 70 = $20. 30

Markup Ex: 2 A store that sells skateboards buys them from a manufacturer at a wholesale price of $57. The store’s markup is 150%. What is the retail price? w Find the amount of the markup( Percent) and turn into decimal. Markup = 150% of $57 1. 50 x 57 85. 50 Add the markup amount to the original price 57. 00 + 85. 50= $142. 50

Markup Ex: 3 w Finding the amount of markup. w A store buys a shirt at a wholesale price of $13. 50 and sells the shirt for $24. 95. How much was it marked up? $24. 95 - $13. 50= $11. 45 w Finding the percent of markup. w What is the percent of markup for the shirt in the first problem? $11. 45 is what percent of $13. 50? 84. 8% or 85%

Markup 1) A store buys a pair of shoes at a wholesale price of $37. 50 and sells them for $50. What is the amount of markup? 2) What is the percent of markup for the pair of shoes in problem 1? 3) Find the cost after markup: $15 movie, 20% markup

Discount w Find the amount of w Find the percent of discount w A $36 book is on sale w What is the percent for $27. What is the of discount for the amount of discount? book in the problem before? $9. 00 25%

Discount 1) A $90 coat is on sale for $76. 50. What is the amount of discount? 2) What is the percent of discount for the coat in problem 1? 3) Find the cost after discount: $85 radio, 10% discount.

Shopping Activity w It is time to shop! w You have $1000 dollars to spend, no more! w You need to shop at least at 6 stores, where you can buy at least one item. Be sure to have at least 2 markups and 2 discounts. w Find the cost after the markup or discount.