Math 6 H Periods 1, 6 & 7 (Tuesday)

Discount and Markup 9-5

A discount is a decrease in the price of an item. A markup is an increase in the price of an item. Both of these changes can be expressed as an amount of money or as a percent of the original price of the item. A store may announce a discount of $3 off the original price of $30 basketball, or a discount of 10%

A warm-up suit that sold for $42.50 is on sale at a 12% discount. What is the sale price?

Method 1: Use the formula

amount of change = percent of change X original amount
= 12% X $42.50

therefore the discount is 0.12 X 42.50 or 5.10
The amount of discount is $5.10
The sale price is 42.50 – 5.10 = $37.40

Method 2: Since the discount is 12%, the sale price is 100% - 12% = 88%.
The sale price is 0.88 X 42.50 = $ 37.40

When you know the amount of discount you subtract to find the new price. When dealing with a markup you add to find the new price.

The price of a new car model was marked up 6% over the previous year’s model. If the previous year’s model sold for $7800, what is the cost of the new car? {and what kind of a car could that be?}
Method 1: Use the formula
amount of change = percent of change X original amount

= 6% X 7800

Therefore the markup is 0.06 X7800= $468
The new price is 7800 + 468 = $8268

Method 2: Since the markup is 6% the new price is 100% + 6% or 106% of the original price. so the new price is 1.06 X7800 = $8268

This year a pair of ice skates sells for $46 after a 15% mark up over last year’s price. What was last year’s price?

This year’s price is 100 + 15 or 115% of last year’s price. Let n present last year’s price
46 = (115/100)n

46 = 1.15n
46/.15 = 1.15n/1.115
40 = n

So last year’s price was $40.

A department store advertised eclectic shavers at a sale price of $36.
If this is a 20% discount, what was the original price?
The sale price is 100 - 20 or 80% of the original price. Let n represent the original price.
36 = (80/100)n
36 = .8n
36/.8 = .8n/.8

45 = n
The original price was $45.
Check to see that your answers are logical and reasonable.

Try these: A service station (that’s gas station, now—they no longer provide service!!) give cash customers a 5% discount on the price of gasoline. If gasoline regularly sells for $3.00 a gallon, what is the discounted price?


A store marks up the price of a $5 item to $12. What is the percent of markup?

Commission and Profit 9-6

Some sales jobs pay an amount based on how much you sell. This amount is called a commission.

Like a discount, the commission can be expressed as a percent or as an amount of money.

amount of commission = percent of commission X total sales.

Using the examples from our textbook,

Maria sold $42,000 word of insurance in January. If her commission is 3% of the total sales, what was the amount of her commission in January?

amount of commission = percent X total sales
0.03 X 42,000 = 1260
Her commission was $1,260.

Profit is the difference between total income and total operating costs.

profit = total income – total costs

The percent of profit is the percent of total income that is profit

percent of profit = profit/total income

MATH AT WORK:
Caterer
A caterer provides food for parties, weddings, bar/bat mitzvahs, and other events. Caterers plan the menu, buy the ingredients, and cook the food. Often they provide seating and music as well. For each event, a caterer determines the cost per guest. The catering business requires a thorough knowledge of rations, proportions, and percents.