basic calculations for travel agents

7/29/2019 Basic Calculations for travel agents

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PERCENTAGES

COMMISSION

DISCOUNTS ANDGST


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For your calculations this afternoon

you will need a calculator


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RETAIL TERMS

As we go through these lessons write down

terms that you are unfamiliar with


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Looking at calculators

remember every one is may be slightly

differentLCD display

Memory functions

Memory

functions


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What's missing?


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Clearing keys

CE.C are clearing keys

AC means all clear CE means clear

entry

on/ce.c clears the lastnumber you entered


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Try these

Key in: 12 + 15 18 + 25 =

The display screen will show: 55

Now try the same calculation but using theother clear key.

Key in: 12 + 15 18 + 25 =

The display screen will show: 43
http://localhost/var/www/apps/conversion/tmp/scratch_1/MATH.pot


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Why did you get two different answers?

What is the difference between the two clearkeys?

Why is it useful to have two different keys?

When would you use each key?


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Why do you need to press C before

you begin a calculation?


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When doing a calculation think

about...

1. what the question is asking.

2. Estimate an answer either using pen andpaper or in your head.

3. Do the calculation on the calculator.

4. Check that the answer on the calculator issimilar to your estimate.

For example if you are adding a ticket for$1700.00 to the tax of $150.50, you can see itmust have .50c in the final answer


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Estimate then calculate

First decide what the question is asking you to do and which operation (+, -, xor ) you need. Then work out an estimate. Here is a worked example. Useyour calculator and follow the example.

Anna gets paid $10.30 per hour. She has worked 15.5 hours in the past twoweeks. She wants to work out what her gross earnings are.

1. She estimates that $10.30 is about $10.00 and 15.5 hours is about 15. Shemultiplies 10 by 15.

What is 10 x 15? Work it out on paper or in your head.

What is the estimate?

2. Using the calculator she multiplies the number of hours by her hourly rate.On the calculator, key

in: 10.30 x 15.5.

The display screen will show: 159.65. That is the exact amount Anna will bepaid. How close is

that to your estimate?


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More function keys

These keys are calledadvanced function keys.

This is the square rootkey.

% is the percentage key.

+/- changes betweenpositive and negative

numbers. MR M- M+ MC are

memory keys


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Memory keys

The memory keys help you to do difficult orcomplex calculations because you can storenumbers and then use them later. This saves time

having to re-enter numbers. It also cuts down onthe possibility of keying errors.

If you use the calculators memory, the calculator

will show this with a small capital M on the left-

hand side of the display.

Example: M 123456.

M


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You will find up to four memory keys

adds the displayed number tothe memory or to what is alreadyin the memory.

subtracts the displayednumber from what is stored in thememory.

recalls the number from thememory and shows it on thedisplay.

MC clears the memory of allinformation and returns it to zero.

Thi k b hi h f i


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Think about which memory function

key you would use for the following.

1. You would like to clearthe memory and make sureit is zero.

2. You would like to add 25to the memory.

3. You would like to subtract18 from the memory.

4. Now you would like torecall the memory value tothe display.


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Fractions, decimals and percentages

Fractions, decimals andpercentages are just threeways of saying the same thinge.g.

1 pizza

decimal 1decimal

fraction 1

100 out of 100

percentage 1 00%

1/2 pizza

Decimal 0.5

fraction

50 out of 100

percentage 50%


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So what about these:1. 12 % : 1 2. ___%

2. 20 % 20. ___%

3. 35 %: 35. ___%


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10 people would get 10%

10%

10%

10%

10%

10%10%

10%

10%

10%

10%

pizza


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Percentages

Per cent means in each hundred or out of 100.

% is the sign for per cent.

100% means 1 00 of 100 100/100

100% means the whole of something; something complete

Think of a whole pizza (100%) you will eat by yourself.

50% = 50/100 = 1/2 of something

You share your pizza equally with a friend and each of you gets half (50%).

25% = 25/100 = 1/4 of something

This time you share a pizza with three friends. If you share the pizza equally

between the four of you, each of you gets a quarter (25%).

75% = 75/100 = 3/4 of something

Each of your three friends gets a quarter or 25% of the pizza.

Your friends have eaten 75% of the pizza because 25% multiplied by three is 75%.


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When you are working out the

percentage of a certain amount,your answer represents a part

(percentage) of the whole number

Remember to estimate before doing the calculation.

If you want 9%, estimate prior what would be 1% (just

move decimal over 2 places) Whole number $100.00

Once gives you 10% $10.00

Twice gives you 1% $1.000


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Finding the percentage of a certain

amount

Andrew would like to buy a airfare for $450.00. Hedecides to pay it off and pays 35% deposit. How

much deposit does he pay? Remember to estimatefirst.

Press

Press

Press

Press

The display screen will show: 157.5.

The deposit will be $157.50.

Display

4 5 0 450

x 450

3 5 35

% 157.50


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Sometimes you have to change an original

amount by a percentage. This can be a

percentage increase

something gets bigger or a percentage

decrease something gets smaller. For

example, to be competitive you might have to

discount insurance by 25%.


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A short sleeve vest costs $95.85.

$95.85 = 100%.

This represents 100% or $95.85

1. 25% increase (mark-up)

A percentage increase means that the vest will

cost more than $95.85.

1 00% + 25% = 125% + =

50%25%

25%


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25% decrease (mark-down)

A percentage decrease means that in a sale

the vest will cost less than $95.85.

1 00% 25% = 75%

- =


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Useful situations for practising

percentage increases could be:

a percentage increase in the cost of your food bill

interest on savings

a pay rise

cost of credit (increased student loan paymentswhen there is a change in interest rates)

adding a mark-up (commission) to an airfare.

A percentage increase can be found by findingthe percentage part and adding it to the originalamount.


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The first method to work out a percentage increase is to find the

percentage part, then add it to the

original amount

An agency buys a flight to Singapore from a

wholesaler to for $800.00

Your agency needs to increase the price by 9%

to make a profit and cover costs.

What is the price increase? What is the new

selling price of the flight?

Step 1: How much is the price


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Step 1: How much is the price

increase?

DISPLAY

PRESS 8 0 0 . 0 0 800.00

PRESS X 800.00

PRESS 9 9

PRESS % 72.00

THE 9% INCREASE (COMMISSION) IS $72.00SO WHAT IS THE NEW COST OF THIS FLIGHT TO SINGAPORE?

72.00

PRESS + 800.00

PRESS = 872.00


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LETS TRY AGAIN A FLIGHT TO LONDON IS 2195.00 ADD 8% COMMISSION

DISPLAY

PRESS 2 1 9 5 . 0 0 2195.00

PRESS X 2195.00

PRESS 8 8

PRESS % 175.60

COMMISSION (MARK UP) 175.60

PRESS + 2195.00

PRESS = 2370.60 THIS IS YOUR SELLING PRICE


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AN EASIER WAY TO ADD PERCENTAGE

IMMEDIATELY

LETS GO BACK TO OUR FARE TO SINGAPORE

DISPLAY

PRESS 8 0 0 . 0 0 800.00

PRESS X 800.00

PRESS 109 109

PRESS % 872.00

With this method you are able to see the increased value straight away.

You can use either method to add a percentage


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DISPLAY

PRESS 2 1 9 5 . 0 0 2195.00

PRESS X 2195.00

PRESS 108 108

PRESS % 2370.60


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Three methods to add percentages

Method 1

Press 25

Press X

Press 3

Press %

Press +

Press =

Display 25.75

Method 2

Press 25

Press +

Press 3

Press %

Display 25.75

Method 3

Press 25

Press x

Press 103

Press %

Display 25.75


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Now try these

30% increase on $65.00

____________________

2. 70% increase on $89.00____________________

3. $195.00 increased by

45%

____________________

$84.50

$151.30

$282.75


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GST

Goods and Services Tax (GST) is a government tax, thepercentage of which can be changed.

Originally GST was 10% then it was put up to 12.5%, but is now 15%

GST is added to a product or a service on top of the amountcalculated to cover costs as well as the amount calculated by theowner of the product or service to make a suitable profit.

GST is included in the marked price of items in shops includingdomestic flights

However, in some retail situations, GST might not be included e.g.

when shopping on the internet or in some restaurants.


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this is the price before GST is added.

this is the price with GST included.


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The GST exclusive (without GST) price of a

coach ticket to Taupo is $20.00

What is the GST and what is the GST-inclusive price (with GST added)?

Method 1 finding % part and adding it on

Press 2 0

Press xPress 1 5 . 0 0

Press %

Display 3

The GST is $3.00 therefore $20+$3=$23 which is the GST inclusive price (with GST included)


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Method 2:

100+% method which automatically adds on GST

Press 2 0

Press x

Press 1 1 5 Press %

Display 23

The GST-inclusive price (with GST included) is$23.00.

$23 20 = $3.00 GST.


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Lets try it out both ways

Flights Price before GST GST amount at 15%

AKL-NSN $128.00

NSN-CHC 345.00

CHC-ZQN 230.00

ZQN-AKL 460.00

Flights Price before GST GST amount at 15%

AKL-TRG $138.00

TRG-WLG $240.00

WLG-DUD 330.00

DUD-AKL 570.00

METHOD 1

METHOD 2


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Working out a GST-exclusive price

Sometimes you need to work out a GST-

exclusive price e.g. if you are comparing prices

and the price of one item is GST-exclusive and

one is GST-inclusive.

(A price that has GST included compared to a

price without GST included)


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Two ipods are on offer.

Ipod 1 costs $229.00, GST-inclusive.

ipod 2 costs $199.14, GST-exclusive.

Which one is cheaper?


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So ipod 1 was the cheaper

Work out the GST-exclusiveprice for ipod 1.

There are a number of ways to

calculate this.

Here are two different

methods.

In Method 1 you divide by 7.67

to give you the GST content,then if you x by 6.67 it gives to

the cost pre GST

Press 2 2 9

Press

Press 7.67

Press x

Press 6.67

Press =

Pre

GST

199.13

Method 1: This method uses

the GST percentage as afraction, 15is 1/8.


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Method 2 works with GST as a

percentage.

It is a method you can

always use, whatever

percentage GST changes

to in the future (with

Method 1 you would haveto adjust the fraction if

the rate of GST changes).

The only thing that has to

be adjusted is the amountof the percentage

Press 2 2 9 . 0 0

Press

Press 1 1 5 . 0 0

Press %

Pre

GST

1 9 9 . 1 3


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Try these

The following prices are GST-inclusive.

Calculate the GST-exclusive price.

1. $304.00 ____

2. $485.00 __

Remember to use either

Method one 304 divided by 7.67 x 6.67= OR Method two 304 divided by 115 %=

$264.36

$421.76


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You can also use your memory

function key

Method 1 (3% increase)

Press 2 5

Press x

Press 3

Press %

Press +

Press = Display 25.75

Method 1A (3% increase usingmemory functions)

Press 2 5

Press x

Press 3

Press %

Press +

Press M+ Display 25.75

M+ replaces = as this is a useful function in more complexcalculations.

Percentage increase and memory


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Percentage increase and memoryfunction keys

When you have to work out a percentage

increase (commission mark up)for a number

of flights and add them all up, use the

memory function keys.

The following exercises show you the keys you

need to press.

Press the keys as you work through the tasksand record your answers at each step.


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1. Find the total cost of these three items:

Flight to London $1600.40, 15% mark-up;

Flight to Paris $1700.20, 25% mark-up;

Return to NYC $3000.80, 20% mark-up.

LON C 1 6 00 40 x 1 5 % + M+ ................

PAR 1 7 00 20 x 2 5 % + M+ ................

NYC 3 00 80 x 2 0 % + M+ ................

Total cost MR ................

d


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Percentage decreases

A percentage decrease can be found by

finding the percentage part and subtracting.

Practise percentage decreases with everyday

problems, e.g:

discounts for insurance (to be competitive)

working out sale prices

reduced loan payments when there is a

change in interest rates.


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Decreasing a number using %

Method 1

Press 8 2 9

Press x

Press 1 5 Press %

Press -

Press =

Display 704.65

Method 2

Press 8 2 9

Press x

Press 8 5 Press %

Display 704.65

Press 8 2 9

Press -

Press 1 5Press %

Display 704.65

Method 3


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Percentage decrease: Find the % part and subtract During a summer sale a clothes shop offers a 20% discount on all trousers.

A pair of trousers was $80.00.

Step 1: How much is the discount?display

Press 8 0 80.

Press x 80.

Press 2 0 20. Press % 16.

The discount is $16.00.

Step 2: What is the new price?

In Step 1 you worked out the amount of the discount was $16.00.

Now lets work out the new price.Display

Press 8 0 80.

Press - 80.

Press 1 6 16.

Press = 64.

The new price is $64.00.

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