6-5 Discounts and Markups

Discounts and Markups

Chapter 6 Lesson 5 (Part 1)

Let's apply some of this math with percents to MARKUPS and DISCOUNTS

We are going to be a human cash register today :)

Example #1 - Markups

• Markups are a percent INCREASE on an item

• Find the selling price if a store pays $42 for a pair of in-line skates and the markup is 25%.

• Step 1: Find the amount of markup (aka take the price TIMES the mark up percent)

• $42 * 0.25 = $10.50

• Step 2: Add the amount to the paid price

• $42 + $10.50 = $52.50 selling price!

General Process for MARKUPS

Step 1: Take selling price TIMES the decimal form of the percent.

Step 2: ADD the amount from Step 1 to the price of the item (Remember... markups are percent INCREASE)

Multiple Choice

Find the selling price if a store pays $75 for a bike and the markup is 40%.

• $30

• $105

• $45

Example #2 - Discounts

• Discounts are a percent DECREASE on an original price!

• Summer Sports is having a sale. A volleyball has an original price of $59. It is on sale for 65% off the original price. Find the sale price of the volleyball.

• Step 1: Find the discount (aka take the price TIMES the decimal form of the percent)

• $59 * 0.65 = $38.35

• Step 2: SUBTRACT the discount from the original price!

• $59 - $38.35 = $20.65 sale price!

General Process for DISCOUNTS

Step 1: Take the original price given and multiply it by the decimal form of the percent

Step 2: SUBTRACT the value you got in Step 1 from the original price of the item (remember... discounts are percent DECREASE)

Multiple Choice

A magazine subscription has a cover price of $35. It is on sale for 67% of the original price. Find the sale price of the magazine subscription.

• $11.55

• $58.45

• $23.45