1. Commission, Simple Interest, Markup, Profit
Week 13

2. 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

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

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

5. 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 _____________.

6. Markups Example 1
A toaster costs the store $ 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 $

7. 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 = $

8. 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 $ 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.

9. 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.

10. 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.

11. 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?

12. 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=

13. Interest YouTry
Sally puts$ in a bank account. Each year the account earns 8% simple interest. How much interest will be earned in three years?

14. 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?

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

16. 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?

17. 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?

18. 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)