Module 8
1. Module 8
1.9. Page 4
Module 8: Daily Living
Bringing Ideas Together
In Explore, you examined price discounts (in percent, %, and in dollar amount, $). In Example 2 you will look at an alternate method you could use to answer the same questions you’ve already answered in this lesson. Maybe you will find this method suits you better.
Example 2
The regular price of a child’s toy guitar is $16.00. The guitar is on sale for 25% off. What is the discounted price?
Solution: Alternate Method
Determine the discounted price by subtracting the percent discount from 100. If the original price is discounted 25%, the discounted price must be 100% - 25% = 75% of the original price. If you look at the status bar image, the area not filled in with red is equal to the discounted price, 75%.
Self-Check
In the following question you will use the two methods shown in Examples 1 and 2 to find the discounted price.
SC 7. A 32” LCD television is regularly $399.99. This week the store is offering a 5% discount. What is the dollar discount and the discounted price? Use both methods shown in Examples 1 and 2.
Price Increases
selling price: the price to be paid by the customer
selling price = wholesale price + mark-up
wholesale price: cost of an item purchased from a wholesale outlet
mark-up: the amount, as a percent or dollar value, by which a store increases the price of an item
The same approach used to find price discounts can be used to find price increases. When would finding percent increases be helpful? Stores, for example, purchase goods from wholesalers for less than the selling price—the price they sell the same goods to customers for. Stores need to add a mark-up to the wholesale price to cover costs, such as salaries, rent, and utility bills.
How much do you think the grocery store paid for the pack of gum you bought for $1.99 last week? You might think of the selling price as the wholesale price plus the mark-up.
Example 3
The local electronics store buys a certain brand of digital camera for $75.00 and marks the price up 70%. What is the dollar mark-up and what is the selling price?
Solution
Method 1
First, find the dollar mark-up.
Then find the selling price.
Method 2
Find the selling price first.
The wholesale price was increased by 70%. So, the selling price is
Self-Check
In the following questions you will use both methods to find the increased prices.
SC 8. The neighbourhood florist has purchased specialty vases for $9.00 apiece wholesale. The florist intends to mark up the vases by 75%. What are the dollar mark-up and the selling price? Use both methods as shown in Example 3.
SC 9. Taxes are another way prices are increased. When you purchase most things in Canada, you will have to pay an additional 5% goods and services tax (GST). Many provinces also have a sales tax. Both tax calculations are based on the original purchase price.
In 2010, in Manitoba, the provincial sales tax is 7% and the federal GST is 5%. Fabbio has just purchased a slow cooker listed at $17.99 from a store in Winnipeg. What was the total cost of his purchase? How much did he pay in taxes?