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. 2

STANDARD 7NS 1.7 Solve problems that involve markups, commissions, profit and interest.

OBJECTIVE Huskies will be able to calculate _________, commissions, _______, and _________.

VOCABULARY Markups: The ___________ between the wholesale price of an item and the ________ price. Commission: The amount of money earned based on a percent of _______. Profit: The difference between ________ and __________. 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 Step 1: Selling price − expenses = profit 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 YouTry An 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?

Cost of a comic book: $3.95 Markup: 20% 2) Original price of a CD: $22.99 Discount: 5% 3) Cost of an oil change: $21.95 Markup: 65%

4) Anthony receives a 9% commission on magazine subscription sales 4) Anthony receives a 9% commission on magazine subscription sales. Last week, his total sales were $1800. How much commission did he earn?

5) You sell fruit drinks at the town field 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?

Homework-Percent Story Problem Worksheet 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)