Sales Tax, Gratuity, Commission, Discounts, and Markups November, 2011 7th Grade Math

10% Review finding 10% of something.

Reminder for me for next year! Start out problems using a table. Tax Tip Discount Commission Price $20 100% + Tax 6% Total x 106% Price $20 100% + Tip x 15% Total 115% Price $20 100% - Discount 45% Total x 55% Price $20 100% +Comm x 3.5% Total 103.5% 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Sales Tax Almost every state has a sales tax they charge when you buy an item from them or someone within their state. Have you ever bought anything from one of these states? Did you pay sales tax?

copyright www.brainybetty.com 2006 All Rights Reserved What is Sales Tax? Sales tax is an additional amount of money charged on items that people buy. 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Notes Organizer Create a table that resembles the one below: allow plenty of space Enough for 8-10 examples Mentally Proportion Percent equation Total Amount Paid

Sales Tax Study Jams - Percent http://studyjams.scholastic.com/studyjams/jams/math/decimals-percents/percents.htm

copyright www.brainybetty.com 2006 All Rights Reserved Sales Tax Practice: A DVD player costs $140, and the sales tax is 5%. What is the tax for the DVD player? 0.05 • $140 = ? Tax = $7.00 What is the TOTAL you will pay for the DVD player? Original price + Tax = Total Cost $140 + $7.00 = $147.00 Proportion Mentally Percent Equation 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Sales Tax Practice: What is the total cost of a sweatshirt if the regular price is $42 and the sales tax is 5%? Show Mentally, Proportion, Percent Equation What is the sales tax of a $178.90 video game system if the tax rate is 6 ½%? 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Practice Problems Include these in your “Sales Tax” Table Glencoe Text Book Page 377 #1, 2, 7, 8, 11,13 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Adding an AWESOME Twist!! If you can learn this, sales tax will be much easier! Go back to example #1: (See next slide)

Can you create a method to calculate the final price? A DVD player costs $140, and the sales tax is 5%. What is the tax for the DVD player? Can you create a method to calculate the final price? Try multiplying $140 by 105% and see what you get! $140 • 100% = $140 $140 • 5% = $7 $140 + $7 = $147 $140 • 105% = $147 Price 100% Final Price 105% Tax 5%

Go back to each of your other examples and calculate the final price using this method! Can I use this method if I only want to know the sales tax on the item I’m purchasing? Why or why not? Price 100% Tax 5% Final Price 105%

copyright www.brainybetty.com 2006 All Rights Reserved Gratuity (Tip) It’s always a good idea to give a gratuity at a restaurant for good service. A gratuity is the “tip” you leave your server for their service. Standard tip percent is 10%-20% 10% = Poor Service 15% = Okay Service 20% = Excellent Service 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Gratuity (Tip) Include these on the “Gratuity Examples Organizer”. Your bill at the Cattle Pen was a total of $20.19 (this includes tax). Your waitress did an excellent job of serving you and taking care of your needs, so you decide to leave her a 20% tip. What amount should you leave as a tip? Show mentally, proportion, percent equation 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Gratuity (Tip) 0.20 • $20.19 = ? Tip = $4.04 ≈ $4 Total Tip for waitress = $4 Total Cost of the meal = $20.19 + $4 = $24.19 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Gratuity (Tip) Practice: If Sally left a 15% tip, and her total bill was $41.23, what was the tip amount? Show mentally, proportion, percent equation Tom’s bill came to $13.45. The waiter only checked on him one time while he was there. He decided to leave a 10% tip. What was the amount of the tip Tom left?

Gratuity (Tip) Practice: The Lewisburg 7th grade ate lunch at Webb’s and spent $466.40. They decided to leave a 15% tip. How much tip did they leave? What was the total they spent at Webb’s? Joseph received excellent service at O’Charleys this weekend, so he decided to leave a 20% tip for his waitress. His bill came to a total of $28. 92. How much tip did he leave? What was the total he spent at O’Charleys?

copyright www.brainybetty.com 2006 All Rights Reserved Gratuity (Tip) Can you use the same “AWESOME twist” that we used in sales tax (the “100% Plus” method)? Explain. 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Commission What is commission? ALL blocks What is commission? Commission – The extra amount of money a sales person makes. (Usually a percentage of their sales.)

Commission A salesperson at Game Stop earns a 10% commission on every Xbox game they sell. Austin buys two (2) Xbox games at $25 each. How much commission does the salesperson earn on their next paycheck?

Commission A car salesman at Mansfield’s earns 7.25% commission on every car they sell. If he sells a car for $19,995, how much commission will he earn on his next paycheck?

copyright www.brainybetty.com 2006 All Rights Reserved Commission Practice Problems: Rainbow Run! 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Review “Part to Whole” Part, Piece, Portion (Tax, Tip, Sale) Whole, Original, Total (Full Price) 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Discounts What is a discount? The amount off the original price Sale Price 80% of… Discount 20% of… Original 100% of…

Discount Practice: A boogie board that has a regular price of $69 is on sale at a 35% discount. What is the discount? 0.35 • $69 = ? Discount = $24.15 What is the sale price (discounted price)? Original Price – discount = Sale price $69 - $24.15 = $44.85

Discount Practice: At Gatlinburg, a ticket to ride the sky lift is $58. On Saturdays, they offer a 20% discount. What is the discount and what is the sale price? Suzy buys makeup at Wal-mart. The makeup costs $4.30 regularly, but she bought it for a 33% discount. What is the discount and what is the sale price?

Discount Practice: Glencoe Text Book Practice Problems (Page 377 - Chapter 7-7) Math Innovations, Page 118 – #6 – 7

copyright www.brainybetty.com 2006 All Rights Reserved Discount Twist What if… You are given the sale price and the discount rate? How do you find the original price? 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Discount Twist % Discount % Paid 100% Total Price 10% 90% 100%

Let’s look at an example together! The regular price of a pair of jeans is $20. They are 30% off. What is the sale price? 30% Discount 70% Price Paid 100% Total Price $6 Discount $14 Price Paid $20 Total Price 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Discount Twist Let’s watch a video first… http://www.onlinemathlearning.com/percent-discount.html Here we go… 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Discount Twist A sweatshirt is on sale for $18. This is 10% off the original price. What was the original price? 100% = 90% + 10% Original Price = Sale Amount + Discount Amount Percent Equation: Percent Proportion: $18 is 90% of x. 18 = .9x $20 = x 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Example #2 A golf club marked down 15%; the sale price is $127.46. What was the original price? 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Example #3 Lynn wants to buy a Fierce Fashions handbag. The clearance sign is 70% off and the sale price is $27. What was the original price? 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Example #4  10% off sale!   Rafael buys a wooden bench during the sale. If Rafael pays $36, what was the original price? 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Mrs. Hardison buys a pet penguin for math class. She buys it on sale for $253. This is 35% off the original price. What was the original price of the pet penguin? 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Practice Glencoe – Page 377 # 5, 14, 15, 16, 17 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Markups What is markup? Definition = The amount stores add to the cost of a product to set the selling price. Why mark up an item? Stores need to charge more than they paid for an item in order to pay operating costs and make a profit. Operating Costs? Costs to operate a business, such as… Profit? Money made after everything is paid

Markups Example #1: Hollister purchases jeans from a supplier for $25 each. They markup the jeans by 75%. What is the cost you would pay for the pair of jeans at Hollister? 0.75 • $25 = $18.75 (This represents the markup) $25 + $18.75 = $43.75 (This represents the price charged) Cost $25 100% + Markup 75% Price Charged x 175%

Markups Example #2: It costs Carla $2.50 to make a candle for her shop, “Carla’s Candles”. If she marks up each candle 225%, what will she charge her customers? 2.25 • $2.50 = $5.63 (This represents the markup) $2.50 + $5.63 = $8.13 (This represents the price charged) Cost $2.50 100% + Markup 225% Price Charged x 325%

copyright www.brainybetty.com 2006 All Rights Reserved Markup Practice “Markup Practice” Worksheet 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved