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 Selling 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 price  Step 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 price  Step 3: Subtract the discount amount to the original price.

Markup and Discount  Markup and Discount are like tax, commission, and tip questions.  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  Markup A retail store buys items at wholesale prices. To cover expenses and make a profit, the sells items at higher retail prices. The extra amount is called the markup A retail store buys items at wholesale prices. To cover expenses and make a profit, the sells items at higher retail prices. The extra amount is called the markup.  Discount When an item is on sale, the store is selling the item for less, so this is called 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 $ x Subtract the discount from the original price = $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 $ x Add the markup amount to the original price = $ Markup

Markup  Finding the amount of markup.  A store buys a shirt at a wholesale price of $13.50 and sells the shirt for $ How much was it marked up?  Finding the percent of markup.  What is the percent of markup for the shirt in the first problem? $ % or 85% $ $13.50= Ex: 3 $11.45 is what percent of $13.50?

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  Find the amount of discount  A $36 book is on sale for $27. What is the amount of discount?  Find the percent of discount  What is the percent of discount for the book in the problem before? $ %

Discount 1)A $90 coat is on sale for $ 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  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.