Lesson 110 & 111

1. Lesson 110 & 111 Markup and Markdown Commission and Profit

2. Review: Interest • How much would Elvira’s $7000 be worth in 2 years if deposited at 9% interest: • Compounded annually? • At simple interest?

3. Markup vs. Markdown • Markup: • Wholesale price plus a percentage (the mark-up) • (orig.price) + (percent x orig.price) • Markdown: • Price reduced by a percentage (like it’s on sale) • (orig.price) – (percent x orig.price)

4. Example 110.1 • Mr. Franklin bought new dresses for $40 each. He marked each dress up 150%. What was the price he charged his customers?

5. Example 110.2 • Sybil saw that the coat was marked down 30 percent. If the original price was $80, what was the price of the coat now?

6. Example 110.3 • The sale price of the ring was $120. It had been marked down 40 percent for the sale. What was the original price of the ring?

7. Commission • Employees get paid this percent of how much they sell for the company

8. Example 111.1 • A sales representative was paid a base salary of $300 a month. He was also paid a commission of 10 percent on everything he sold. If he sold $26,000 worth of merchandise in 1 month, what was his paycheck?

9. Profit • amount of total sales left after all of the bills have been paid • Profit = (total sales) – (bills)

10. Example 111.2 • A store owner marks up her merchandise 40 percent. Her expenses are $5200 a month. If she paid $16,000 for the goods sold in 1 month, what was her profit?