setting a price
TRANSCRIPT
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Setting a Price!Why do we pay the prices that we do?
Review : Working with Per cents and Decimals
In this section, you will calculate percentages and convert between percents
and decimals.
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Review
Convert 65% to a decimal.
Percent (%) means “out of 100,” so a percentage is a ratio with a
denominator of 100.
• To convert a percentage to a decimal, first convert it to a fraction with a denominator of 100, then divide the numerator by the denominator.
• 65% means 65 out of 100, or as a fraction, 65
100• Divide 65 by 100 to get 65% as a decimal.• 65 ÷ 100 = 0.65
• 65% is equal to 0.65.
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Try these
1. Convert the following percentages to decimals.
• a) 78%• b) 93%• c) 125%• d) 324% Click HERE for • e) 0.5% answer if you• f) 0.38% need to• g) 1.2%• h) 100%
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Review Example 1
Calculate 20% of 45.
• To find a percentage of a number, you can use proportional reasoning.
• Let x represent 20% of 45. Use proportional reasoning to solve for x.
20 X 100 45
Click HERE to see solution
=
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Review Example 2
What is 190% of 85?
Hint - If the percentage is larger than 100, then your answer will be larger than the number you started with.
Click HERE to see answer
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Review Example 3
What percent is 5 of 20?
• To calculate what percent one number is of another means that you need to determine what number out of 100 is equivalent to your ratio.
• You are really being asked: “What number out of 100 is equivalent to 5 out of 20?”
• Click HERE to view answer
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New Skills: Working with Markups and Taxes
• When a person owns a business, she usually buys merchandise at a wholesale price.
• She then sells it at a higher price, called a retail price, in order to make a profit. The retail price is often determined by adding a certain percentage of the wholesale price to the wholesale price. The amount added is referred to as the markup.
Marnie owns a clothing store. Her standard markup is 85%. She bought a coat from the wholesaler at $125.00.a) What would the markup be?b) How much would Marnie charge her customer for the coat?
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SolutionChange the markup of 85% to a decimal. 85 ÷ 100 = 0.85
Multiply the wholesale price by the decimal amount of the markup.
$125.00 × 0.85 = $106.25
The markup is $106.25.
Marnie would charge her customer the original price plus the markup.
$125.00 + $106.25 = $231.25
With a markup of 85%, Marnie would charge her customer $231.25.
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There are three kinds of taxes that you may need to consider when purchasing items:
Goods and Services Tax (GST), Provincial Sales Tax (PST), and Harmonized SalesTax (HST).
In purchases, in addition to the markup, taxes are usually added to the retail price.