Markup and Markup and DiscountDiscount

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.

TerminologySelling Price - The price

retailers charge customers

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

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 Markups

Step 1: Find the amount of the markup (the percent) Step 2: Turn the percent into a decimal and Multiply it by the original priceStep 3: Add the markup amount to the original price.

Finding Discounts

Step 1: Find the amount of the discount (the percent) Step 2:Turn the percent into a decimal and Multiply it by the original priceStep 3: Subtract the discount amount to the original price.

Markup and DiscountMarkup and Discount Markup and Discount are like tax, Markup and Discount are like tax,

commission, and tip questions.commission, and tip questions.

You can…You can…1)1) Change the percent to a decimal and Change the percent to a decimal and

multiply.multiply.2)2) Write an equation to find the missing Write an equation to find the missing

percent.percent.3)3) Write a proportion like percent problemsWrite a proportion like percent problems

Basic Selling Price Formula

Selling price (S) = Cost (C) + Markup (M)

$1,200Computer

$900 - Pricepaid to bring

computerinto store

$300 - Dollars to

cover expenses and

profit

Markup vs. DiscountMarkup vs. Discount

MarkupMarkupA retail store buys A retail store buys

items at items at wholesale wholesale pricesprices. To cover . To cover expenses and make a expenses and make a profit, the sells items profit, the sells items at higher at higher retail retail pricesprices. The extra . The extra amount is called the amount is called the markupmarkup.

DiscountDiscount

When an item is on When an item is on salesale, the store is , the store is selling the item for selling the item for less, so this is called less, so this is called discount.discount.

Ex1: You buy a pair of jeans that is 30% off the original price of $29. What is the sale price of an item?

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

Discount

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?

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

MarkupMarkup

Finding the amount of Finding the amount of markup.markup.

A store buys a shirt at A store buys a shirt at a wholesale price of a wholesale price of $13.50 and sells the $13.50 and sells the shirt for $24.95. How shirt for $24.95. How much was it marked much was it marked up?up?

Finding the Finding the percent of percent of markup.markup.

What is the What is the percent of markup percent of markup for the shirt in the for the shirt in the first problem?first problem?

$11.45 84.8% or 85%

$24.95- $13.50=

Ex: 3

$11.45 is what percent of $13.50?

MarkupMarkup

1) A store buys a pair of shoes at a wholesale 1) A store buys a pair of shoes at a wholesale price of $37.50 and sells them for $50. price of $37.50 and sells them for $50. What is the amount of markup?What is the amount of markup?

2) What is the percent of markup for the pair 2) What is the percent of markup for the pair of shoes in problem 1?of shoes in problem 1?

3) Find the cost after markup: $15 movie, 3) Find the cost after markup: $15 movie, 20% markup20% markup

DiscountDiscount

Find the amount of Find the amount of discountdiscount

A $36 book is on sale A $36 book is on sale for $27. What is the for $27. What is the amount of discount?amount of discount?

Find the percent of Find the percent of discountdiscount

What is the percent What is the percent of discount for the of discount for the book in the problem book in the problem before?before?

$9.00 25%

DiscountDiscount

1)1) A $90 coat is on sale for $76.50. What is the A $90 coat is on sale for $76.50. What is the amount of discount?amount of discount?

2)2) What is the percent of discount for the coat What is the percent of discount for the coat in problem 1?in problem 1?

3)3) Find the cost after discount: $85 radio, Find the cost after discount: $85 radio, 10% discount.10% discount.

Shopping ActivityShopping Activity

It is time to shop!

You have $1000 dollars to spend, no more!

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.

Find the cost after the markup or discount.