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Commission, Simple Interest, Markup, ProfitWeek 13

+DO NOW (3 mins)PKB (Prior Knowledge Box)

Topic: Commission, Simple Interest, etc.

Misconceptions

Complete this side only. List anything that you know about the above topic.

+STANDARD7NS 1.7 Solve problems that involve markups, commissions, profit and interest.

+OBJECTIVEHuskies will be able to calculate _________, commissions, _______, and _________.

+VOCABULARY1. Markups: The ___________ between the

wholesale price of an item and the ________ price.

2. Commission: The amount of money earned based on a percent of _______.

3. Profit: The difference between ________ and __________.

4. Interest: Money made off of _____________.

+ Markups Example 1A toaster costs the store $12.95. The store marks the toaster up 45% before it is sold retail. At what price will the toaster sell retail?

Step 1: Find the markup by multiplying the percent of markup by the store cost.

Step 2: Store cost + markup = retail price

The toaster will sell retail for $

+ Markups YouTry

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?Solution Find the amount of the markup.

Markup = = Write 150% as a decimal. = Multiply

Add the markup to the wholesale price. Retail price = Wholesale price + Markup =Retail Price = $

+ Profit Example

A hair salon buys a bottle of shampoo for $3.50 and sells the same shampoo for $15.99 a bottle. How much profit does the store make when it sells each bottle of shampoo?

Step 1: Selling price − expenses = profitThe salon makes $ profit on each bottle of shampoo it sells.

+ Profit YouTryAn ice cream shop sells cones that cost the shop $1.25 each. The shop wants to make a 65% profit on each cone sold. How much should the shop charge for each ice cream cone?Step 1: Find the profit by multiplying the percent of markup by the store cost.

Step 2: Profit + expenses = selling price

The shop should charge $ per cone.

+ Commission Example

Irvin makes 2% commission on the software he sells. Last month he sold $7,500 worth of software. How much should he receive in commission?

Step 1: Commission rate x total sales = commission

Irvin’s commission is for the month.

+ Commission YouTry

Monica works at Best Buy and makes 3% commission. She sold a washing machine/dryer set for $1,380. What is her commission?

+ Interest ExampleKelly has a saving account with $800. Her interest rate is 6% per year. How much interest will she receive in 2 years?

Step 1: Amount in the Account x Interest Rate=

Step 2: Yearly interest x How many years=

+ Interest YouTrySally puts$200.00 in a bank account. Each year the

account earns 8% simple interest. How much interest will be earned in three years?

+Prior Knowledge Box (PKB)Topic: Commission, Mark-ups, etc.

Misconceptions

What did you think you knew but you found out was a misconception? If you didn’t have any prior knowledge, what did you learn/ review today?

+1) Cost of a comic book: $3.95

Markup: 20%2) 2) Original price of a CD:

$22.99 Discount: 5%3) 3) Cost of an oil change:

$21.95 Markup: 65%

+4) Anthony receives a 9% commission on magazine subscription sales. Last week, his total sales were $1800. How much commission did he earn?

+5) You sell fruit drinks at the town field. This past weekend, you collected $107. Your expenses for the fruit drinks were $82. What is your profit?

+Agenda

Homework-Percent Story Problem Worksheet Bring a white board marker

(DUE: P.1,3,5- Mondays and Thursday. P.2,4,6- Tuesdays and Fridays)