Post on 26-Dec-2015
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Commission, Simple Interest, Markup, Profit
Week 13
+DO NOW (3 mins)PKB (Prior Knowledge Box)
Topic: Commission, Simple Interest, etc.
Misconceptions
Complete this side only. List anything that you know about the above topic.
+STANDARD
7NS 1.7 Solve problems that involve markups, commissions, profit and interest.
+OBJECTIVE
Huskies will be able to calculate _________, commissions, _______, and _________.
+VOCABULARY1. Markups: The ___________ between the
wholesale price of an item and the ________ price.
2. Commission: The amount of money earned based on a percent of _______.
3. Profit: The difference between ________ and __________.
4. Interest: Money made off of _____________.
+ Markups Example 1
A toaster costs the store $12.95. The store marks the toaster
up 45% before it is sold retail. At what price will the toaster sel
l retail?
Step 1: Find the markup by multiplying the percent of markup by the store cost.
Step 2: Store cost + markup = retail price
The toaster will sell retail for $
+ Markups YouTry
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?
Solution
Find the amount of the markup. Markup =
= Write 150% as a decimal.
= Multiply
Add the markup to the wholesale price. Retail price = Wholesale price + Markup
=
Retail Price = $
+ Profit Example
A hair salon buys a bottle of shampoo for $3.50 and sells the same shampoo for $15.99 a bottle. How much profit does the store make when it sells each bottle of shampoo?
Step 1: Selling price − expenses = profit
The salon makes $ profit on each bottle of shampoo it sells.
+ Profit YouTryAn ice cream shop sells cones that cost the shop $1.25 each. The shop wants to make a 65% profit on each cone sold. How much should the shop charge for each ice cream cone?
Step 1: Find the profit by multiplying the percent of markup by the store cost.
Step 2: Profit + expenses = selling price
The shop should charge $ per cone.
+ Commission Example
Irvin makes 2% commission on the software he sells. Last month he sold $7,500 worth of software. How much should he receive in commission?
Step 1: Commission rate x total sales = commission
Irvin’s commission is for the month.
+ Commission YouTry
Monica works at Best Buy and makes 3% commission. She sold a washing machine/dryer set for $1,380. What is her commission?
+ Interest Example
Kelly has a saving account with $800. Her interest rate is
6% per year. How much interest will she receive in 2 years?
Step 1: Amount in the Account x Interest Rate=
Step 2: Yearly interest x How many years=
+ Interest YouTry
Sally puts$200.00 in a bank account. Each year the
account earns 8% simple interest. How much interest will be earned in three years?
+Prior Knowledge Box (PKB)
Topic: Commission, Mark-ups, etc.
Misconceptions
What did you think you knew but you found out was a misconception? If you didn’t have any prior knowledge, what did you learn/ review today?
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1) Cost of a comic book: $3.95 Markup: 20%
2) 2) Original price of a CD: $22.99 Discount: 5%
3) 3) Cost of an oil change: $21.95 Markup: 65%
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4) Anthony receives a 9% commission on magazine subscription sales. Last week, his total sales were $1800. How much commission did he earn?
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5) You sell fruit drinks at the town field. This past weekend, you collected $107. Your expenses for the fruit drinks were $82. What is your profit?
+Agenda
Homework-Percent Story Problem
Worksheet
Bring a white board marker
(DUE: P.1,3,5- Mondays and Thursday. P.2,4,6- Tuesdays and Fridays)