Lesson 6-8 Warm-Up

Markup and Discount (6-8) What is “markup”? How do you find the percent of markup ? markup (also known as profit): the amount a store adds to the amount it paid for an item (the store’s cost), so the store can make a profit. The selling price is the amount the store sells an item for after markup. The percent of markup is a percent of increase or the difference between the store’s cost and the selling price. Rule: store’s cost + markup = selling price To find the markup, find the percent of increase using a proportion or by dividing the amount of markup by the store’s original cost. Rule:

Markup and Discount (6-8) Example: An electronics store orders a set of walkie-talkies for $14.85 each and sells each set for $19.90. What is the percent of markup? Method 1: Proportion 19.90 – 14.85 = 5.05 Find the markup (amount of increase) # % Part (Known) 5.05 m Whole (Unknown) 14.85 100 = Proportion . 5.05 14.85 x 100 14.85 • x = 5.05 • 100 Cross products are equal. 1 = Divide both sides by 14.85. . 14.85x 14.85 5.05 1 x = 5.05  14.85 = 0.34 = 0 3 4 . = 34% The percent of markup 34%.

Markup and Discount (6-8) How do you find the percent of a number? Method 2: Divide the markup by the original amount (store’s cost) 19.90 – 14.85 = 5.05 Find the markup = Divide the markup by the store’s cost . (original amount of the item) 5.05 14.85 0.34 0 3 4 . = 34% Multiply by 100, which means move the decimal 2 places to the right to change a decimal into a percent. The percent of markup 34%.

Find the amount of markup. Markup and Discount LESSON 6-8 Additional Examples Find the percent of markup for a stapler costing the school store $2.10 and selling for $3.36. 3.36 – 2.10 = 1.26 Find the amount of markup. # % Part (Known) 1.26 m Whole (Unknown) 2.10 100 1.26 2.1 m 100 = Write a proportion. Let m = percent of markup. 100 • 1.26 = 2.1m Write the cross products. 126 2.1 2.1m = Division Property of Equality. 60 = m Simplify. The percent of markup is 60%.

markup = percent of markup • store’s cost Markup and Discount LESSON 6-8 Additional Examples A grocery store has a 20% markup on a can of soup. The can of soup costs the store $1.25. Find the markup. markup = percent of markup • store’s cost = 0.2 • 1.25   = 0.25        Simplify. The markup is $.25.

Markup and Discount (6-8) How do you find the selling price (regular price)? To find the selling price, add the markup to the store’s cost. Example: A music store’s percent of markup is 67%. If a CD cost the store $10.15, what is the selling price of the CD? Step 1: Find the markup. markup = 67% of $10.15 = 0.67 • $10.15 Change percent to a decimal, “of” to a “times” sign, and remove labels  6.80 Simplify and round to the nearest cent. Step 2: selling price = markup + original rice selling price = $6.80 + $10.15 Substitute The CD is selling for $16.95.

0.45 • 4.50 = 2.03 Multiply to find the markup. Markup and Discount LESSON 6-8 Additional Examples A bookstore pays $4.50 for a novel. The percent of markup is 45%. Find the novel’s selling price. 0.45 • 4.50 = 2.03 Multiply to find the markup. 4.50 + 2.03 = 6.53   Store’s cost + markup = selling price. The selling price is $6.53.

Markup and Discount (6-8) What is “discount”? How do you find the discount / markdown ? Discount (also called the Markdown): the amount a store subtracts from the selling price, so the store can sell an item quickly. The sale price is the new price after the discount is taken off. amount . The percent of discount (markdown) is a percent of decrease or the difference between the selling price and the sale price. Rule: selling price (regular price) - discount = sale price To find the discount, find the percent of decrease using a proportion or by dividing the amount of discount (markdown) by the store’s original cost similar to the way you found the percent of markup. Rule:

Markup and Discount (6-8) Example: Athletic shoes that normally sell for $85.99 are on sale for 20% off. What is the sale price of the shoes. Method 1: Selling Price (Regular Price) – Discount = Sale Price First, use a proportion to find the discount. # % Part (Unknown) d 20 Whole (Known) 85.99 100 = Proportion . d 85.99 20 100 100 • x = 85.99 • 20 Cross products are equal. 1 = Divide both sides by 14.85. . 100x 100 1719.8 1 x = 1719.8  100  17.20 So, the discount is 17.20%. Selling Price (Regular Price) – Discount = Sale Price $85.99. - 17.20 = $68.79 The shoes are on sale for $68.79

Markup and Discount (6-8) Method 2: Find the new percent of the original price. 100% – 20% = 80% Find the new percent after the percent of change Now, find the new percent of the original price. You can use a proportion or an equation to do this. # % Part (Unnown) d 80 Whole (Known) 85.99 100 = Proportion . d 85.99 80 100 100 • x = 85.99 • 80 Cross products are equal. 1 = Divide both sides by 14.85. . 100x 100 6879.2 1 x = 6879.2  100  68.79 The shoes are on sale for $68.79

Find the percent of discount for a $74.99 tent that Markup and Discount LESSON 6-8 Additional Examples Find the percent of discount for a $74.99 tent that is discounted to $48.75. 74.99 – 48.75 = 26.24 Find the amount of discount. # % Part (Unknown) 26.24 p Whole (Known) 74.99 100 26.24 74.99 p 100 = Write a proportion. 74.99 • p = 26.24 • 100 Write the cross products. 74.99p 74.99 2,624 = Division Property of Equality. p 35 Simplify. The percent of discount for the tent is about 35%.

discount = percent of discount • regular price Markup and Discount LESSON 6-8 Additional Examples A camera that regularly sells for $210 is on sale for 30% off. Find the discount. discount = percent of discount • regular price = 0.30 • 210 = 63 The discount is $63.

A shoe store advertises a 35%-off sale. What is Markup and Discount LESSON 6-8 Additional Examples A shoe store advertises a 35%-off sale. What is the sale price of shoes that regularly cost $94.99? Find the discount first. 35% of $94.99 equals the discount. 0.35 • 94.99 = 33.2465 Multiply to find the discount. = $33.25 Round to the nearest hundredth. Then subtract to find the sale price. 94.99 – 33.25 = 61.74 regular price – discount = sale price The sale price is $61.74.

Markup and Discount LESSON 6-8 Lesson Quiz Solve. 1. The school store has a 65% markup on each stapler. Each stapler costs the store $2.10. Find the markup. 2. A clothes store pays $40 for a skirt. The percent of markup is 25%. Find the skirt’s selling price. 3. A pair of shoes that regularly sells for $94.99 is on sale for 30% off. What is the sale price? $1.37 $50 $66.49