January 24, 2017

Real Life Applications of Percent Change

Markup/Profit

In order to turn a profit, companies/restaurants will buy materials at a cost price to them, and then sell to consumers at a higher price. The amount that the price changes from purchase cost to selling cost is called the amount of markup. Amount of change, amount of markup, and profit can all be considered synonymous.

Some companies or businesses have a set percentage that they impose on their goods, other companies determine how much they'll raise the price on a case-by-case basis.

In any case....The percent that a company raises their purchased price in order to arrive at their selling price is the percent of markup or percent of profit. This is also known as the percent of change/increase.

Selling Price (to consumer) = (markup or profit) + (cost price to company)

Amount of markup = (cost price to company)(% of markup or profit)

Selling price to consumer = (cost price)(100% + % markup or profit)

January 24, 2017

January 24, 2017

January 24, 2017

AnswersFollow this format:

Let x = what the restaurant paid initially

x + (% of markup)x = selling price

1. Gnocchi.:

x + (0.75)x = 10.95

1.75x = 10.95

x = $6.26

2. Spaghetti w/garlic + oil:

x + (0.75)x = 6.95

1.75x = 6.95

x = $3.97

3. Ziti w/Ricotta:

1.75x = 8.95

x = $5.11

Selling

$6.95

75% markup

Selling

$10.95

75% markup

Selling

$8.95

75% markup

January 24, 2017

Based on your previous results, what is the profit this pizza parlor is making on those items?

Remember markup or profit (in simple terms), will be the difference between what the pizza parlor paid and what you pay as the buyer!

1. Gnocchi.:

$10.95 - $6.26 = x

x = $4.69 profit

2. Spaghetti w/Garlic + oil:

$6.95 - $3.97 = x

x = $2.98 profit

3. Baked Ziti w/Ricotta:

$8.95 - $5.11 = x

x = $3.84 profit

January 24, 2017

Discounts A.K.A

The most visible application of percent of decrease in your lives is discounts or sales. The monetary change between the regular price and the sale price is the amount of discount. This is the money you save. The percent of discount is the percent off the price or the sales percentage.

Amount of Discount = (Original selling price)(% of discount)(what you save) (percent off)

Sale Price = (Original Selling Price) - (discount)

Sale Price = (original price)(100% - % discount)

It is important to understand that when there is a sale, the sales tax is applied AFTER the sale is computed.

January 24, 2017

January 24, 2017

Find the original price if $25 is the sale price after a 36.7% discount.

January 24, 2017

January 24, 2017

From Text 7A, p.174:

2. A table is sold at a 20% discount of its marked price. Find the selling price if the marked price is $980.

3. A rice cooker is sold at a discount of 15%. If the discount is $24, find

a) its marked price

b) its selling price

January 24, 2017

4. When a pair of shoes is sold at a 12.5% discount, the selling price is $78.75. Find

a) the marked price

b) the amount of discount

A hat costs a store $8.00.

A) Find the profit if the markup is 215%.

B) Find the selling price.

January 24, 2017

Using the previous examples, find the profit to the stores if they each impose a 210% markup on their products.

Hollister Abercrombie

January 24, 2017

January 24, 2017

January 24, 2017

You invest $1000. Your investment loses 12%, then gains 12% back. Are you back to your original $1000??