January 24, 2017
Real Life Applications of Percent Change
Markup/Profit
In order to turn a profit, companies/restaurants will buy materials at a cost price
to them, and then sell to consumers at a higher price. The amount that the price
changes from purchase cost to selling cost is called the amount of markup.
Amount of change, amount of markup, and profit can all be considered
synonymous.
Some companies or businesses have a set percentage that they impose on their goods,
other companies determine how much they'll raise the price on a case-by-case basis.
In any case....The percent that a company raises
their purchased price in order to arrive at their
selling price is the percent of markup or percent of profit.
This is also known as the percent of change/increase.
Amount of markup = (cost price to company)(% of markup or profit)
Selling Price (to consumer) = (markup or profit) + (cost price to company)
Selling price to consumer = (cost price)(100% + % markup or profit)
January 24, 2017
January 24, 2017
January 24, 2017
Answers
Follow this format:
Let x = what the restaurant paid initially
x + (% of markup)x = selling price
1. Gnocchi.:
2. Spaghetti w/garlic + oil:
3. Ziti w/Ricotta:
x + (0.75)x = 10.95
x + (0.75)x = 6.95
1.75x = 8.95
1.75x = 10.95
1.75x = 6.95
x = $5.11
x = $6.26
x = $3.97
Selling
$10.95
75% markup
Selling
Selling
$6.95
$8.95
75% markup
75% markup
January 24, 2017
Based on your
previous results, what
is the profit this pizza
parlor is making on
those items?
Remember markup or profit (in simple terms), will be
the difference between what the pizza parlor paid and
what you pay as the buyer!
1. Gnocchi.:
2. Spaghetti w/Garlic + oil:
3. Baked Ziti w/Ricotta:
$10.95 - $6.26 = x
$6.95 - $3.97 = x
$8.95 - $5.11 = x
x = $4.69 profit
x = $2.98 profit
x = $3.84 profit
January 24, 2017
Discounts
A.K.A
The most visible application of percent of decrease in your lives is discounts or
sales. The monetary change between the regular price and the sale price is
the amount of discount. This is the money you save. The percent of discount
is the percent off the price or the sales percentage.
Amount of Discount = (Original selling price)(% of discount)
(what you save)
(percent off)
Sale Price = (Original Selling Price) - (discount)
Sale Price = (original price)(100% - % discount)
It is important to understand that when there is a sale,
the sales tax is applied AFTER the sale is computed.
January 24, 2017
January 24, 2017
Find the original price if $25 is the sale price
after a 36.7% discount.
January 24, 2017
January 24, 2017
From Text 7A, p.174:
2. A table is sold at a 20% discount of its marked price. Find the
selling price if the marked price is $980.
3. A rice cooker is sold at a discount of 15%. If the discount
is $24, find
a) its marked price
b) its selling price
January 24, 2017
4. When a pair of shoes is sold at a 12.5% discount, the
selling price is $78.75. Find
a) the marked price
b) the amount of discount
A hat costs a store $8.00.
A) Find the profit if the markup is 215%.
B) Find the selling price.
January 24, 2017
Using the previous examples, find the profit to the stores if they each impose a
210% markup on their products.
Hollister
Abercrombie
January 24, 2017
January 24, 2017
January 24, 2017
You invest $1000. Your investment loses 12%,
then gains 12% back. Are you back to your
original $1000??