6-6 Commission, Sales Tax, and Profit Warm Up Warm Up California Standards California Standards Lesson Presentation Lesson PresentationPreview

6-6 Commission, Sales Tax, and Profit Warm Up Estimate % of out of % of out of % % Possible answers:

6-6 Commission, Sales Tax, and Profit NS1.7 Solve problems that involve discounts, markups, commissions, and profit and compute simple and compound interest. Also covered: NS1.3 California Standards

6-6 Commission, Sales Tax, and Profit A commission is a fee paid to a person who makes a sale. It is usually a percent of the selling price. This percent is called the commission rate. commission ratesalescommission commission rate  sales = commission

6-6 Commission, Sales Tax, and Profit A real-estate agent is paid a monthly salary of $900 plus commission. Last month he sold one condominium for $65,000, earning a 4% commission on the sale. How much was his commission? What was his total pay last month? Additional Example 1: Multiplying by Percents to Find Commission Amounts First find his commission. 4%  $65,000 = ccommission rate  sales = commission 0.04  65,000 = c Change the percent to a decimal = c Solve for c.

6-6 Commission, Sales Tax, and Profit Additional Example 1 Continued He earned a commission of $2600 on the sale. Now find his total pay for last month. $ $900 = $3500 commission + salary = total pay. His total pay for last month was $3500. A real-estate agent is paid a monthly salary of $900 plus commission. Last month he sold one condominium for $65,000, earning a 4% commission on the sale. How much was his commission? What was his total pay last month?

6-6 Commission, Sales Tax, and Profit A car sales agent is paid a monthly salary of $700 plus commission. Last month she sold one sports car for $50,000, earning a 5% commission on the sale. How much was her commission? What was her total pay last month? Check It Out! Example 1 First find her commission. 5%  $50,000 = ccommission rate  sales = commission 0.05  50,000 = c Change the percent to a decimal = c Solve for c.

6-6 Commission, Sales Tax, and Profit Check It Out! Example 1 Continued The agent earned a commission of $2500 on the sale. Now find her total pay for last month. $ $700 = $3200 commission + salary = total pay. Her total pay for last month was $3200. A car sales agent is paid a monthly salary of $700 plus commission. Last month she sold one sports car for $50,000, earning a 5% commission on the sale. How much was her commission? What was her total pay last month?

6-6 Commission, Sales Tax, and Profit Sales tax is the tax on the sale of an item or service. It is a percent of the purchase price and is collected by the seller.

6-6 Commission, Sales Tax, and Profit If the sales tax rate is 6.75%, how much tax would Adrian pay if he bought two CDs at $16.99 each and one DVD for $36.29? Additional Example 2: Multiplying by Percents to Find Sales Tax Amounts CD: 2 at $16.99$33.98 DVD: 1 at $36.29 $36.29 $70.27Total Price  = Write the tax rate as a decimal and multiply by the total price. Adrian would pay $4.74 in sales tax.

6-6 Commission, Sales Tax, and Profit Check It Out! Example 2 Amy reserves a hotel room for $45 per night. She stays for two nights and pays a sales tax of 13%. How much tax did she pay? $45  2 = $90 Find the total price for the hotel stay. $90  0.13 = $11.70 Write the tax rate as a decimal and multiply by the total price. Amy spent $11.70 on sales tax.

6-6 Commission, Sales Tax, and Profit Anna earns $1500 monthly. Of that, $ is withheld for Social Security and Medicare. What percent of Anna’s earnings are withheld for Social Security and Medicare? Additional Example 3: Using Proportions to Find the Percent of Earnings Think: What percent of $1500 is $114.75? Set up a proportion n 100 = n  1500 = 100  Find the cross products. 1500n = 11,475 Simplify.

6-6 Commission, Sales Tax, and Profit Additional Example 3 Continued n = % of Anna’s earnings is withheld for Social Security and Medicare. 11, n = Simplify. Divide both sides by 1500 Anna earns $1500 monthly. Of that, $ is withheld for Social Security and Medicare. What percent of Anna’s earnings are withheld for Social Security and Medicare?

6-6 Commission, Sales Tax, and Profit BJ earns $2500 monthly. Of that, $500 is withheld for income tax. What percent of BJ’s earnings are withheld for income tax? Check It Out! Example 3 Think: What percent of $2500 is $500? Set up a proportion n 100 = n  2500 = 100  500 Find the cross products. n = 20 50, n = 2500n = 50,000 Simplify. Simplify. Divide both sides by % of BJ’s earnings are withheld for income tax.

6-6 Commission, Sales Tax, and Profit A furniture store earns 30% profit on all sales. If total sales are $2790, what is the profit? Additional Example 4A: Finding Profit and Total Sales Think: What is 30% of 2790? x = 0.30  2790Set up an equation. x = 837 The profit is $837. Multiply.

6-6 Commission, Sales Tax, and Profit Think: 10,044 is 30% of what number? Let s = total sales 10,044 = 0.30  sSet up an equation. 33,480 = s Simplify. The total sales are $33,480. A furniture store earns 30% profit on all sales. If the store earns $10,044, how much are the total sales? Additional Example 4B: Finding Profit and Total Sales 10, = Divide each side by s 0.30

6-6 Commission, Sales Tax, and Profit A retail store earns 40% profit on all sales. If total sales are $3320, what is the profit? Check It Out! Example 4A Think: What is 40% of 3320? x = 0.40  3320Set up an equation. x = 1328 The profit is $1328. Multiply.

6-6 Commission, Sales Tax, and Profit Think: 5,680 is 40% of what number? Let s = total sales 5,680 = 0.40  s Set up an equation. 14,200 = s Simplify. The total sales are $14,200. A furniture store earns 40% profit on all sales. If the store earns $5,680, how much are the total sales? Check It Out! Example 4B 5, = Divide each side by s 0.40

6-6 Commission, Sales Tax, and Profit Lesson Quiz 1.Every month, Gillian makes $1600 plus an 8.9% commission on sales. If her sales last month totaled $18,400, what was her total pay? 2. The sales tax is 5.75%, and the shirt costs $20. What is the total cost of the shirt? 3. Sheridan has a yearly income of $39,650, and he is advised to invest $4500 every year. What percent of his income should he invest, to the nearest tenth of a percent? $21.15 $ % 4. A grocery store earns 5% profit on all canned goods. If the store sold $1635 of canned goods, what was the profit? $81.75

6-6 Commission, Sales Tax, and Profit