Business Math in Retail
Practicum in Business Management
Lesson Plan
Performance Objective
Upon completion of this lesson, each student will calculate assorted discounts and markups related to
retail math.
Specific Objectives
 Students will explain the concepts of cost, dollar markup, and retail price.
 Students will calculate cash, trade, quantity, and chain discounts.
 Students will define the different types of discounts.
 Students will solve various merchandising math problems.
 Students will explain how markup percentage is calculated.
This lesson should take 10-12 class days to complete, unless the teacher decides to teach the discount
material separately from markup.
Preparation
TEKS Correlations
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities
may result in the elimination of any or all of the TEKS listed.
Interdisciplinary Correlations
Reading I, II, III
 110.47(b)
o (1) The student uses the following word recognition strategies. The student is expected
to:
(A) Apply knowledge of letter-sound correspondences, language structure, and
context to recognize words;
(B) Use reference guides such as dictionaries, glossaries, and available
technology to determine pronunciations of unfamiliar words;
o (2) The student acquires an extensive vocabulary through reading and systemic word
study. The student is expected to:
(A) Expand vocabulary by reading, viewing, listening, and discussing;
(B) Determine word meanings through the study of their relationships to other
words and concepts such as content, synonyms, antonyms, and analogies;
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o (4) The student comprehends text using effective strategies. The student is expected to:
(A) Use prior knowledge and experience to comprehend;
(B) Determine and adjust purpose for reading; and
(D) Summarize texts by identifying main ideas and relevant details.
Public Speaking I, II, III
 110.57 (b)
o (4) Organization. The student organizes speeches. The student is expected to:
(B) Organize speeches effectively for specific topics, purposes, audiences, and
occasions.
o (7) Delivery. The student uses appropriate strategies for rehearsing and presenting
speeches. The student is expect to:
(C) Develop verbal, vocal, and physical skills to enhance presentations.
Tasks

Teachers will review the entire lesson and prepare accordingly.
Accommodations for Learning Differences
It is important that lessons accommodate the needs of every learner. These lessons may be modified
to accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
 Copy the handouts
Instructional Aids
 Student worksheets
Materials Needed
 Copies
 Pencils
Equipment Needed
 Teacher computer
 Projector (for any digital presentation)
 Calculators
Introduction
Learner Preparation
 How do businesses decide how to price their merchandise?
 How do service businesses arrive at a price for their service?
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

List what is included in overhead expenses on the board.
Explain that profit margin is the amount after overhead expenses and mark downs have been
taken care of.
Lesson Introduction
 Ask the class how much they pay for jeans or shoes.
 Ask them what they think the retailer pays for the items.
 Tell them the amount between cost and retail price is called dollar markup or profit margin.
 Explain retailers have to mark the prices up to cover all overhead costs, including theft and
merchandise they have to put on sale.
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Outline
MI
OUTLINE
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
NOTES TO TEACHER
The teacher has the discretion to teach
Discounts and Markups back to back or
separate them.
Discounts
Advantages
Types of Discounts
Cash Discounts
ROG & EOM
Pricing
Formulas
Wait, I’m Confused
Keystone Pricing
More formulas
The teacher will use the multimedia
presentation to explain the various types
of discounts. Students will take notes
using the Student Notes Outline. The
students will then complete the
worksheets.
The teacher will use the multimedia
presentation to explain the concept of
markup based on retail method. Students
will take notes using the Student Notes
Outline and then will complete the
worksheets.
These concepts may be somewhat difficult
for the students to grasp. It may be
necessary for the teacher to make up
additional problems. One suggestion is to
put students into groups or pairs and have
them craft five or 10 problems (and work
the answer keys) that could be compiled
and shared with the entire class.
Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
Visual/Spatial
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Application
Guided Practice
The teacher will use the multimedia presentations to teach the material. The teacher will monitor
students’ independent practice.
Summary
Review



Why do retailers consider overhead expenses when pricing merchandise?
Why is it an advantage to a retailer to take any discounts available?
What is Keystone pricing?
Evaluation

Informal Evaluation
 Teacher will check for understanding
 Very small work group option (students help each other)

Formal Evaluation
 Tests over the material
5
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Math: Discounts
Student Notes Outline KEY
OBJECTIVES:






Calculate an assortment of discounts
Assimilate a retail environment through use of word problems in calculating assortments of
discounts
Demonstrate knowledge of correct procedures in calculating cash/trade discounts
Demonstrate understanding of trade/cash discounts by calculating EOM and ROG terms
Demonstrate proficiency with math calculations
Calculate quantity and cumulative quantity discounts
What are the Advantages of Discounts?
Allows BUYERS/MERCHANTS the “best deal”
Provides an INCENTIVE to do business w/company
GENERATES $$$ for Open to Buy


Merchant has more $$ available to PURCHASE ADDITIONAL MERCHANDISE
Merchant is more capable to generate PROFIT
Types of Discounts
1. SEASONAL

Purchases must be made well in advance

Usually at least SIX MONTHS in advance

Deep SAVINGS for merchants w/STORAGE.

Buy LARGE QUANTITIES and store in WAREHOUSE
2. QUANTITY

The MORE units ORDERED, the more $$ SAVED

Incentive to PURCHASE MASS QUANTITIES
3. CUMULATVE QUANTITY
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
A RUNNING total is kept so DISCOUNT INCREASES as more orders are placed
4. CHAIN
Expressed as:

Less 15%, 10%, 5% (percentages will vary)
 **DO NOT add PERCENTAGES before taking DISCOUNT

**Take each percentage SEPARATELY from BALANCE
Example of Chain Discount:
A tire manufacturer sells radial tires for $85, less 15%, 9%, 4%.
$85.00 x .15 = $12.75
$72.25 x .09 = $6.50
$85.00 - $12.75 = $72.25
$72.25 - $6.50 = $65.75
$65.75 x .04 = $2.63
$65.75 – 2.63 = $60.42
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PART TWO OF PRESENTATION
5. TRADE CREDIT/CASH DISCOUNTS
 Allows MERCHANT to sell merchandise prior to billing
 Gives EXTRA time to generate PROFIT
 Most companies deal with more than one VENDOR
 Bills are PAID as terms MATURE
 Shown on INVOICE as “Terms:”
Note: Each numeral in the equation may vary:
Expressed as:
2/15, n/60 or 2/15, net 60 or 2/15, n60
Interpreted as:
2% discount if paid within 15 days of the date of the invoice.
All is due 60 days from date of invoice, if the discount is not taken.
Example:
Invoice Amount: $599.65
Date of Invoice: Nov. 12, 2013
Terms:
3/10, n/60
When does the discount deadline end? Nov. 22
When is the final payment due if discount is not taken? Jan 11
What is the amount payable w/discount? $581.66
What is the discount amount in $$? $17.99


Do you know how many days are in each month?
Use the knuckle method
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


Make a fist and look at your knuckles.
The first knuckle is “January;” February is in between; the second knuckle is “March;”
“April” is in between; “May” is the 3rd knuckle; “June” is in between; “July” is the last
knuckle; start again on the first knuckle and it’s “August”; then “September” is in
between; “October” is the next knuckle; “November” is in between; then “December” is
the next knuckle.
All “Knuckles” have 31 days; the in-betweeners have 30 with the exception of February,
which has 28 days.
CASH DISCOUNTS PART 2
ROG:



Stands for “Receipt of Goods”
In this case the discount period and the final payment period begin when the
merchandise is received, not the invoice date.
2/15, n/60 ROG
EOM:




Stands for “End of Month”
Written: 2/12, n/45 EOM
Actually gives an extra time period for billing
The key to remember: 25th day of the month
 if the date of the invoice is before the 25th day of the month, then the counting
period for the discount and final payment due starts on the last day of that
current month.
 If the date of the invoice is after the 25th day of the month, then the counting
period for the discount and final payment due jumps to the last day of the month
that FOLLOWS THE CURRENT MONTH.
9
Copyright © Texas Education Agency, 2015. All rights reserved.
Math: Discounts
Student Notes Outline
OBJECTIVES






Calculate an assortment of discounts
Assimilate a retail environment through use of word problems in calculating assortments of
discounts
Demonstrate knowledge of correct procedures in calculating cash/trade discounts
Demonstrate understanding of trade/cash discounts by calculating EOM and ROG terms
Demonstrate proficiency with math calculations
Calculate quantity and cumulative quantity discounts
What are the Advantages of Discounts?
Allows ___________/________________ the “best deal”
Provides an________________ to do business w/company
________________ $$$ for Open to Buy


Merchant has more $$ available to _________________________________
Merchant is more capable to generate ____________
Types of Discounts
1. ________________

Purchases must be made well in advance


Usually at least _________________ in advance
Deep ________________ for merchants w/_________________

Buy _____________ _________________ and store in ___________________
2. ________________

The ________ units _____________, the more $$ _____________

Incentive to __________________________________________
3. ___________________ __________________
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
A ______________ total is kept so ______________ _______________ as more orders
are placed
4. ___________
Expressed as:


Less 15%, 10%, 5% (percentages will vary)
**DO NOT add ___________________ before taking ________________

**Take each percentage _________________ from ________________
Example of Chain Discount:
A tire manufacturer sells radial tires for $85, less 15%, 9%, 4%.
Calculate the problem:
5. _______________________





Allows ____________________ to sell merchandise prior to billing
Gives __________ time to generate ____________
Most companies deal with more than one ____________
Bills are ________ as terms ____________
Shown on ____________ as “Terms:”
Note: Each numeral in the equation may vary:
Expressed as:
2/15, n/60 or 2/15, net 60 or 2/15, n60
Interpreted as:
_____% discount if paid w/in _____ days of invoice.
All is due ______ days from date of invoice.
Example:
Invoice Amount: $599.65
Date of Invoice: Nov. 12, 2004
Terms:
3/10, n/60
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When does the discount deadline end? __________
When is the final payment due if discount is not taken? ____________
What is the amount payable w/discount? ___________
What is the discount amount in $$? _________

Do you know how many days are in each month?

Use the knuckle method
 Make a fist and look at your knuckles.

The first knuckle is “January;” ___________is in between; the second knuckle is
“March;” “April” is in between; ___________is the 3rd knuckle; “June” is in between;
“July” is the last knuckle; start again on the first knuckle and it’s ___________; then
“September” is in between; “October” is the next knuckle; ___________is in between;
then ___________is the next knuckle.

All “Knuckles” have 31 days; the in-betweeners have 30 with the exception of
______________, which has 28 days.
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CASH DISCOUNTS PART 2
ROG:



Stands for “__________________”
In this case the discount period and the final payment period begin when the
merchandise is received, not the invoice date.
2/15, n/60 ROG
EOM:




Stands for “_______________”
Written: 2/12, n/45 EOM
Actually gives an extra time period for billing
The key to remember: ________day of the month
 If the date of the invoice is before the _____day of the month, then the counting
period for the discount and final payment due starts on the last day of that
_________ month.
 If the date of the invoice is after the _____ day of the month, then the counting
period for the discount and final payment due jumps to the last day of
the_______________________________.
13
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Math Discounts
Calculate the following problems. You may use your notes if you need to. Don’t just copy your
neighbor’s answer!



Date of Invoice:
Purchase amount:
11/16/13
$6,789.50
Terms:
3/10, N60
Date paid
12/12/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
11/20/13
$25,759
Terms:
4/15, N45
Date paid:
12/20/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
12/15/13
$559.60
Terms:
2/10, N60
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Date paid:


12/31/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
11/29/13
$25.75
Terms:
3/10, N30
Date paid:
12/8/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
1/17/13
$12,755.90
Terms:
4/15, N90
Date paid:
2/28/ 13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
15
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


Date of Invoice:
Purchase amount:
1/15/13
$29,667
Terms:
2/10, N30
Date paid:
1/25/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
2/14/13
$459.20
Terms:
6/15, N30
Date paid:
2/28/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
3/15/13
$29,875
Terms:
4/20, N60
Date paid:
3/31/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
16
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


Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
3/12/13
$65,790
Terms:
3/10, N45
Date paid:
3/21/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
_______________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
4/20/13
$452.79
Terms:
3/15, N90
Date paid:
5/2/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
3/10/13
$3,472.77
Terms:
3/15, N60
17
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Date paid:


4/2/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
2/10/13
$19.065.57
Terms:
3/10, N90
Date paid:
2/18/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
_______________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
11/20/13
$4,099.97
Terms:
2/10, N90
Date paid:
12/2/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
18
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


Date of Invoice:
Purchase amount:
8/11/13
$995.04
Terms:
3/10, N45
Date paid:
8/17/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
$55.90
9/2/13
Terms:
2/15, N60
Date paid:
9/12/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
4/20/13
$325.45
Terms:
3/10, N30
Date paid:
5/1/13
Date due to take discount:
________________________
19
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

Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
1/6/13
$78.97
Terms:
3/10, N30
Date paid:
1/15/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
10/20/13
$1,673.23
Terms:
2/10, N30
Date paid:
10/29/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
20
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


Date of Invoice:
Purchase amount:
9/13/13
$555.15
Terms:
3/10, N60
Date paid:
9/21/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
7/31/13
$2,714.50
Terms:
3/10, N60
Date paid:
8/9/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
11/30/13
$766.45
Terms:
3/15, N60 EOM
Date paid:
1/10/13
21
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

Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
6/26/13
$85.95
Terms:
3/15, N30 ROG
Date paid:
7/12/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
4/20/13
$677.50
Terms:
2/10, N30 EOM
Date paid:
5/2/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
22
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

Date of Invoice:
Purchase amount:
7/27/13
$672.13
Terms:
4/15, N60 EOM
Date paid:
8/12/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
Date of Invoice:
Purchase amount:
8/10/13
$199.80
Terms:
2/10, N30 ROG
Date paid:
8/18/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount:
________________________
23
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Math KEY
Discounts
Calculate the following problems. You may use your notes if you need to. Don’t just copy your
neighbor’s answer!!!


Date of Invoice:
Purchase amount:
11/16/13
$6,789.50
Terms:
3/10, N60
Date paid
12/12/13
Date due to take discount:
11/26/13
Amount payable w/discount:
$6,585.82
Date due without discount:
Jan. 16, 2014
Amount saved by taking discount:
$203.68
Date of Invoice:
Purchase amount:
11/20/13
$25,759
Terms:
4/15, N45
Date paid:
12/20/13
Date due to take discount:
12/5/13
Amount payable w/discount:
$24,728.64
Date due without discount:
Jan. 5, 2014
Amount saved by taking discount:
$1,030.36
24
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


Date of Invoice:
Purchase amount:
12/15/13
$559.60
Terms:
2/10, N60
Date paid:
12/31/13
Date due to take discount:
12/25/13
Amount payable w/discount:
$548.41
Date due without discount:
2/13/14
Amount saved by taking discount:
$11.19
Date of Invoice:
Purchase amount:
11/29/13
$25.75
Terms:
3/10, N30
Date paid:
12/8/13
Date due to take discount:
12/9/13
Amount payable w/discount:
$24.98
Date due without discount:
12/29/13
Amount saved by taking discount:
$.77
Date of Invoice:
Purchase amount:
1/17/13
$12,755.90
Terms:
4/15, N90
Date paid:
2/28/14
25
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

Date due to take discount:
2/1/13
Amount payable w/discount:
$12,245.66
Date due without discount:
4/17/14
Amount saved by taking discount:
$510.24
Date of Invoice:
Purchase amount:
1/15/13
$29,667
Terms:
2/10, N30
Date paid:
1/25/13
Date due to take discount:
1/25/13
Amount payable w/discount:
$29,073.66
Date due without discount:
2/14/13
Amount saved by taking discount:
$593.34
Date of Invoice:
Purchase amount:
2/14/13
$459.20
Terms:
6/15, N30
Date paid:
2/28/13
Date due to take discount:
3/1/13
Amount payable w/discount:
$431.65
Date due without discount:
3/16/13
Amount saved by taking discount:
$27.55
26
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


Date of Invoice:
Purchase amount:
3/15/13
$29,875
Terms:
4/20, N60
Date paid:
3/31/13
Date due to take discount:
4/4/13
Amount payable w/discount:
$28,680
Date due without discount:
5/14/13
Amount saved by taking discount:
$1,195
Date of Invoice:
Purchase amount:
3/12/13
$65,790
Terms:
3/10, N45
Date paid:
3/21/13
Date due to take discount:
3/22/13
Amount payable w/discount:
$63,816.30
Date due without discount:
4/26/13
Amount saved by taking discount:
$1,973.70
Date of Invoice:
Purchase amount:
4/20/13
$452.79
Terms:
3/15, N90
Date paid:
5/2/13
27
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

Date due to take discount:
5/5/13
Amount payable w/discount:
$439.21
Date due without discount:
7/1/13
Amount saved by taking discount
$13.58
Date of Invoice:
Purchase amount:
3/10/14
$3,472.77
Terms:
3/15, N60
Date paid:
4/2/14
Date due to take discount:
4/4/14
Amount payable w/discount:
$3,368.59
Date due without discount:
6/9/14
Amount saved by taking discount:
$103.49
Date of Invoice:
Purchase amount:
2/10/14
$19.065.57
Terms:
3/10, N90
Date paid:
2/18/14
Date due to take discount:
2/20/14
Amount payable w/discount:
$18,493.60
Date due without discount:
5/11/14
Amount saved by taking discount:
$571.97
28
Copyright © Texas Education Agency, 2015. All rights reserved.



Date of Invoice:
Purchase amount:
11/20/14
$4,099.97
Terms:
2/10, N90
Date paid:
12/2/14
Date due to take discount:
11/30/14
Amount payable w/discount:
$4017.97
Date due without discount:
2/18/15
Amount saved by taking discount:
$82.00
Date of Invoice:
Purchase amount:
8/11/13
$995.04
Terms:
3/10, N45
Date paid:
8/17/13
Date due to take discount:
8/21/13
Amount payable w/discount:
$995.19
Date due without discount:
9/25/13
Amount saved by taking discount:
$29.85
Date of Invoice:
Purchase amount:
9/2/13
$55.90
Terms:
2/15, N60
Date paid:
9/12/13
29
Copyright © Texas Education Agency, 2015. All rights reserved.


Date due to take discount:
9/17/13
Amount payable w/discount:
$54.78
Date due without discount:
11/1/13
Amount saved by taking discount:
$1.12
Date of Invoice:
Purchase amount:
4/20/13
$325.45
Terms:
3/10, N30
Date paid:
5/1/13
Date due to take discount:
4/30/13
Amount payable w/discount:
$315.69
Date due without discount:
5/10/13
Amount saved by taking discount:
$9.76
Date of Invoice:
Purchase amount:
$78.97
1/6/13
Terms:
3/10, N30
Date paid:
1/15/13
Date due to take discount:
1/16/13
Amount payable w/discount:
$76/60
Date due without discount:
2/5/13
Amount saved by taking discount:
$2.37
30
Copyright © Texas Education Agency, 2015. All rights reserved.



Date of Invoice:
Purchase amount:
10/20/13
$1,673.23
Terms:
2/10, N30
Date paid:
10/29/13
Date due to take discount:
10/30/13
Amount payable w/discount:
$1639.77
Date due without discount:
11/19/13
Amount saved by taking discount:
$33.46
Date of Invoice:
Purchase amount:
9/13/13
$555.15
Terms:
3/10, N60
Date paid:
9/21/13
Date due to take discount:
9/23/08
Amount payable w/discount:
$538.50
Date due without discount:
11/12/13
Amount saved by taking discount:
$16.65
Date of Invoice:
Purchase amount:
7/31/13
$2,714.50
31
Copyright © Texas Education Agency, 2015. All rights reserved.


Terms:
3/10, N60
Date paid:
8/9/13
Date due to take discount:
8/10/13
Amount payable w/discount:
$2633.07
Date due without discount:
9/29/13
Amount saved by taking discount:
$81.43
Date of Invoice:
Purchase amount:
11/30/13
$766.45
Terms:
3/15, N60 EOM
Date paid:
1/10/13
Date due to take discount:
1/15/13
Amount payable w/discount:
$743.46
Date due without discount:
3/1/13
Amount saved by taking discount:
$22.99
Date Received:
Purchase amount:
6/26/13
$85.95
Terms:
3/15, N30 ROG
Date paid:
7/12/13
Date due to take discount:
7/11/13
32
Copyright © Texas Education Agency, 2015. All rights reserved.


Amount payable w/discount:
$83.37
Date due without discount:
7/26/13
Amount saved by taking discount:
$2.58
Date of Invoice:
Purchase amount:
4/20/13
$677.50
Terms:
2/10, N30 EOM
Date paid:
5/2/13
Date due to take discount:
5/10/13
Amount payable w/discount:
$663.95
Date due without discount:
5/30/13
Amount saved by taking discount:
$13.55
Date of Invoice:
Purchase amount:
7/27/13
$672.13
Terms:
4/15, N60 EOM
Date paid:
8/12/13
Date due to take discount:
8/28/13
Amount payable w/discount:
$195.80
Date due without discount:
9/25/13
Amount saved by taking discount:
$26.89
33
Copyright © Texas Education Agency, 2015. All rights reserved.

Date of Invoice:
Purchase amount:
8/10/13
$199.80
Terms:
2/10, N30 ROG
Date received:
8/18/13
Date due to take discount:
8/28/13
Amount payable w/discount:
$195.80
Date due without discount:
9/13/13
Amount saved by taking discount:
$4.00
34
Copyright © Texas Education Agency, 2015. All rights reserved.
Math: Discounts Part 1
Worksheet
CALCULATE THE SEASONAL DISCOUNTS BELOW:
ITEM
AMOUNT OF
PURCHASE
SEASONAL
DISCOUNT
Lawn mowers
$980.00
15%
Halloween
costumes
$327.00
5%
Christmas
Decorations
$489.00
20%
Water skis
$1757.00
10%
AMOUNT OF
DISCOUNT
NET COST TO
BUSINESS
CALCULATE THE PERCENT OF DISCOUNT AND THE TOTAL DUE IF THE FOLLOWING PROMOTIONAL
DISCOUNTS ARE TAKEN:
ITEM
AMOUNT OF
PURCHASE
PROMOTIONAL
DISCOUNT
NET COST TO
BUSINESS
DISCOUNT %
Motorcycles
$ 2750.00
$220.00
$
%
Ski boots
$ 1200.00
$120.00
$
%
Snow boots
$ 1750.00
$ 87.50
$
%
Sail boats
$ 7560.00
$113.40
$
%
35
Copyright © Texas Education Agency, 2015. All rights reserved.
CALCULATE THE QUANTITY AND/OR CUMULATIVE QUANTITY DISCOUNTS:
Refer to the chard to see purchase requirements for discount:
3%
5%
7%
1-10
21-35
36-45
ITEM
QUANTITY
PURCHASED
9%
12%
14%
17%
20%
46-55
56-70
71-80
81-90
91-100
AMOUNT OF
PURCHASE
DISCOUNT
ALLOWED
NET COST TO
BUSINESS
Tennis shoes
38 pr.
$42.00 .PR
$
$
Athletic socks
89 pr.
$.37 pr.
$
$
$2.60 ea.
$
$
Backpacks
95
36
Copyright © Texas Education Agency, 2015. All rights reserved.
ANSWER KEY
Math: Discounts Part 1
Worksheet
CALCULATE THE SEASONAL DISCOUNTS BELOW:
ITEM
AMOUNT OF
PURCHASE
SEASONAL
DISCOUNT
AMOUNT OF
DISCOUNT
NET COST TO
BUSINESS
Lawn mowers
$980.00
15%
$147.00
$ 833.00
Halloween
costumes
$327.00
5%
$ 16.35
$ 310.65
Christmas
Decorations
$489.00
20%
$ 97.80
$ 391.20
Water skis
$1757.00
10%
$175.70
$ 1581.30
CALCULATE THE PERCENT OF DISCOUNT AND THE TOTAL DUE IF THE FOLLOWING PROMOTIONAL
DISCOUNTS ARE TAKEN:
ITEM
AMOUNT OF
PURCHASE
PROMOTIONAL
DISCOUNT
NET COST TO
BUSINESS
DISCOUNT %
Motorcycles
$ 2750.00
$220.00
$2530.00
8%
Ski boots
$ 1200.00
$120.00
$1080.00
10%
Snow boots
$ 1750.00
$ 87.50
$1662.50
5%
Sail boats
$ 7560.00
$113.40
$7446.60
1½%
37
Copyright © Texas Education Agency, 2015. All rights reserved.
CALCULATE THE QUANTITY AND/OR CUMULATIVE QUANTITY DISCOUNTS:
Refer to the chard to see purchase requirements for discount:
3%
5%
7%
1-10
21-35
36-45
ITEM
QUANTITY
PURCHASED
9%
12%
14%
17%
20%
46-55
56-70
71-80
81-90
91-100
AMOUNT OF
PURCHASE
DISCOUNT
ALLOWED
NET COST TO
BUSINESS
Tennis shoes
38 pr.
$42.00 pr.
$111.72
$1484.28
Athletic socks
89 pr.
$.37 pr.
$ 5.60
$ 27.33
$2.60 ea.
$ 49.40
$ 197.60
Backpacks
95
38
Copyright © Texas Education Agency, 2015. All rights reserved.
Math TEST: Discounts




You purchase three dozen backpacks at $12.50 each. You negotiate the sale with the following
terms: 4/15, n/60. The merchandise is delivered on 7-13-13. Find the following:

Deadline for discount period

Discount amount

Deadline for full payment

Amount saved with discount
_______________________________
$_______________________________
_______________________________
$_______________________________
A shipment of rugs arrives on May 9, 2013 in the amount of $62,471.98. The terms on the
invoice are 2/10, n/90. Find the following:

Deadline for discount period

Discount amount

Deadline for full payment
_______________________________

Amount saved with discount
$______________________________
_______________________________
$______________________________
An Order of CDs is delivered and billed on March 3rd. The total invoice billing is $987.52 and
you are granted a 7% promotional discount on the purchase. Payment terms are 2/15, n/45.
Find the following:

Deadline for discount period

Discount amount

Deadline for full payment

Amount saved with discount
_______________________________
$_______________________________
_______________________________
$_______________________________
You purchase a printer for $749.99, less 9%, 7%, 6%. What is the final price for the printer?

__________________
39
Copyright © Texas Education Agency, 2015. All rights reserved.

You purchase the following office furniture:

Desk
$ 750

Chair
300

Filing cabinet
150

Bookcase
240
The vendor has offered a quantity discount of 11%, plus a promotional discount of 5% on the
total purchase. What amount did you write a check for? $______________


You order Christmas decorations in June and are offered a 10% seasonal discount. The amount
of the purchase totals $672.45 and you successfully negotiate the following terms:

Seasonal discount amount
$_______________________

Deadline for discount
________________________

Discount amount
$_______________________

Full payment amount
$_______________________

Amount saved after all discounts
$_______________________
The following items were ordered on January 13, 2013:

23 lamps @ $17.50 each

12 tables @ $75.00 each

3 couches @ $210.00 each

6 recliners @ $180 each

8 rugs @ $90 each
What is the total order amount before any discounts are offered? $______________
You were granted a chain discount of less 11%, 8%, 5% and a seasonal discount of 4%.
40
Copyright © Texas Education Agency, 2015. All rights reserved.
Determine the amount of the purchase after discounts are taken $_______________
The merchandise is delivered and billed on January 26th with the following terms on the
Invoice: 4/15, n/60 EOM

When is the discount deadline? __________________________

When is the full payment due? __________________________

Amount paid if discount is taken $_________________________

Amount to be saved with the discount $____________________

What is the TOTAL dollar amount saved with all discounts considered?


$____________________
Find the answers: (2 pts. for each blank)
ITEM
PRICE
QUANTITY
TOTAL
Shoes
$23.65
22.00 pairs
_______
Boots
$51.50
14 pair
_______
Shoelaces
.70
8 doz.
_______
Shoe polish
.84
10 doz.
_______
Purses
$22.75
9 ea.
_______
Purses
$ 8.50
10 ea.
_______
41
Copyright © Texas Education Agency, 2015. All rights reserved.
Math TEST KEY: Discounts
1. You purchase three dozen backpacks at $12.50 each. You negotiate the sale with the following
terms: 4/15, n/60. The merchandise is delivered on 7-13-13. Find the following:

Deadline for discount period
July 28, 2013

Discount amount
18.00

Deadline for full payment
September 11, 2013

Amount paid with discount
$61,222.54
2. A shipment of rugs arrives on May 9, 2013 in the amount of $62,471.98. The terms on the
invoice are 2/10, n/90. Find the following:

Deadline for discount period
May 19, 2013

Discount amount
$1249.44

Deadline for full payment
August 7, 2013

Amount paid with discount
$61,222.54
3. An Order of CDs is delivered and billed on March 3rd. The total invoice billing is $987.52 and you
are granted a 7% promotional discount on the purchase. Payment terms are 2/15, n/45. Find the
following:

Deadline for discount period

Discount amount

Deadline for full payment
April 17

Amount paid with discount
$900.02
March 18
$1249.44
4. You purchase a printer for $749.99, less 9%, 7%, 6%. What is the final price for the printer?

$596.63
42
Copyright © Texas Education Agency, 2015. All rights reserved.
5. You purchase the following office furniture:

Desk
$750

Chair
300

Filing cabinet
150

Bookcase
240
The vendor has offered a quantity discount of 11%, plus a promotional discount of 5% on the
total purchase. What amount did you write a check for? $1217.52
6. You order Christmas decorations in June and are offered a 10% seasonal discount. The amount of
the purchase totals $672.45 and you successfully negotiate the following terms:

Seasonal discount amount
$67.25

Deadline for discount
July 13

Discount amount
$24.21

Full payment amount
$605.21

Amount saved after all discounts
$91.45
7. The following items were ordered on January 13, 2014:

23 lamps @ $17.50 each

12 tables @ $75.00 each

3 couches @ $210.00 each

6 recliners @ $180 each

8 rugs @ $90 each
What is the total order amount before any discounts are offered? $3,732.50
You were granted a chain discount of less 11%, 8%, 5% and a seasonal discount of 4%.
Determine the amount of the purchase after discounts are taken: $2,787.23
The merchandise is delivered and billed on January 26th with the following terms on the
Invoice: 4/15, n/60 EOM
43
Copyright © Texas Education Agency, 2015. All rights reserved.

When is the discount deadline? March 15

When is the full payment due? April 29

Amount paid if discount is taken $2,675.74

Amount to be saved with the discount $111.49

What is the TOTAL dollar amount saved with all discounts considered?

$1,057.76
8. Find the answers: (2 pts. for each blank)
ITEM
PRICE
QUANTITY
TOTAL
Shoes
$23.65
22 pair
$520.30
Boots
$51.50
14 pair
$721.00
Shoelaces
.70
8 dozen
$ 67.20
Shoe polish
.84
10 doz.
$100.80
Purses
$22.75
9 ea.
$204.75
Purses
$ 8.50
10 ea.
$ 85.00
44
Copyright © Texas Education Agency, 2015. All rights reserved.
Markups
Complete the following chart. Remember to include your $$$ and %%% where necessary!
ADJUST ACCORDING TO SUBJECT
Retail Price
Cost
$4,597.50
$1,665.00
$ 995.99
$ 445.75
$
$ Mark Up
1.75
$
$3,667.55
$
$
$1,055.99
2.95 each
$
4.99 each
.85
$ 775.50
$225.75
$
.95
$5,550.45
.95
Markup %
$ 359.25
$ 9.50/ doz.
Find the information needed to complete the problems below:
45
Copyright © Texas Education Agency, 2015. All rights reserved.
I. The cost of a suit is $174.55. It retails for $299.99. Determine the $MU and the MU%
$MU=
MU%=
II. A DVD player costs $75.00. You mark it up $144.00. Determine the RP and the MU%
RP=
MU%=
III. The following shipment arrives. You will need to price the merchandise and move it to the sales
floor.
4 shirts @ $15.50 ea. (cost)
$MU $22.50
RP (each) =
MU%=
46
Copyright © Texas Education Agency, 2015. All rights reserved.
Markups KEY
Complete the following chart. Remember to include your $$$ and %%% where necessary!
Retail Price
Cost
$ Mark Up
Markup %
$4,597.50
$1,665.00
$2,932.50
63.7% (64%)
$ 995.99
$ 445.75
$ 550.24
55.2% (55%)
$
$
$
.95
54.2% (54%)
1.75
.80
$9,218.00
$5,550.45
$3,667.55
39.7% (38%)
$1.80
$
$
.85
47.2% (47%)
$1,055.99
$ 280.49
$ 775.50
73.4% (73%)
$585.00
$ 225.75
$ 359.25
61.4% (61%)
$
$
$
2.16 ea.
73.2% (73%)
$
3.08 ea.
61.7% (62%)
2.95 each
.95
9.50/dz.
(.79 ea.)
$
4.99 each
$
22.95/dz.
($1.91 ea.)
47
Copyright © Texas Education Agency, 2015. All rights reserved.
Find the information needed to complete the problems below:
I. The cost of a suit is $174.55. It retails for $299.99. Determine the $MU and the MU%
$MU= $125.44
MU%= 41.8% (42%)
II. A DVD player costs $75.00. You mark it up $144.00. Determine the RP and the MU%
RP= $219.00
MU%= 34.2% (34%)
III. The following shipment arrives. You will need to price the merchandise and move it to the sales
floor.
4 shirts @ $15.50 ea. (cost) $MU $22.50
RP (each) = $38.00 MU%= 59.2%
(59%)
48
Copyright © Texas Education Agency, 2015. All rights reserved.
Markups Practice
Calculate the following information where needed:




You purchase one dozen desks at $118.00 each. You intend to retail them for $279.99 each.
Calculate the $MU and the MU%. What is the total purchase amount? If you were to sell all
the desks, what is the dollar amount of total profit that you would make?
 $MU
 MU%
 Total purchase
 Total amount of profit
Ice Cream Sundaes retail for $3.99 each. Each one costs you $.92 to make. Find the $MU and
the MU%:
 $MU:
 MU%:
You purchase two dozen tires to sell in your store. You plan to markup each tire by 67%.
Calculate the following to determine the retail price of each stock model of tire:
QUANTITY
STOCK #
UNITS
COST
$MU
RETAIL PRICE
4
SSRvTS1
ea.
$75.00
3
TTSRvr5
ea.
$38.00
4
YNUSV3
ea.
$41.55
2
HMq45t
ea.
$92.90
3
SKX45v1
ea.
$122.90
4
LMX50-V
ea.
$151.60
4
MRSv55a
ea.
$99.05
Calculate the following:
 Socks:
$1.28 at cost.
 RP
______
 $MU ______

Towels:
$4.08 at cost.
 RP
______
MU% = 71%
MU% = 38%
49
Copyright © Texas Education Agency, 2015. All rights reserved.

$MU
______

Shelves:
$13.19 at cost.
 RP
______
 $MU ______
MU% = 42%

Chairs:
$51.88 at cost.
 RP
______
 $MU ______
MU% = 72%

Shovels:
$13.55 at cost.
 RP
______
 $MU
______
MU% = 35%

Hats:
$115.05 at cost.
 RP
______
 $MU
______

Shorts:
$8.45 at cost.
MU% = 31%
 RP
______
 $MU
______

Suitcase:
$16.45 at cost.
 RP
______
 $MU
______

Books:
$1.45 at cost.
MU% = 28%
 RP
______
 $MU
______

Boots:
$52.00 at cost.
 RP
______
 $MU
______
MU% = 29%
MU% = 39%
MU% = 34%
50
Copyright © Texas Education Agency, 2015. All rights reserved.
Complete the chart:
RETAIL PRICE
COST
$6.45
$2.18
$MU
$19.33
MU%
22%
$169.95
$62.66
$11,555.09
$3,200
$19.95
66%
$199.99
45%
$799.99
$400.00
$15.50
$24.50
$645.00
$49.95
35%
$15.66
51
Copyright © Texas Education Agency, 2015. All rights reserved.
Markups Practice KEY
Calculate the following information where needed:
1. You purchase one dozen desks at $118.00 each. You intend to retail them for $279.99 each.
Calculate the $MU and the MU%. What is the total purchase amount? If you were to sell all the
desks, what is the dollar amount of total profit that you would make?
 $MU
$ 161.99
 MU%
58%
 Total purchase
$1,416.00
 Total amount of profit
$1,943.88
2.Ice Cream Sundaes retail for $3.99 each. Each one costs you $.92 to make. Find the $MU and the
MU%:
 $MU:
$3.07
 MU%:
77%
3. You purchase two dozen tires to sell in your store. You plan to markup each tire by 67%.
Calculate the following to determine the retail price of each stock model of tire:
QUANTITY
STOCK #
UNITS
COST
$MU
RETAIL PRICE
4
SSRvTS1
ea.
$75.00
$302.27
$227.27
3
TTSRvr5
ea.
$38.00
77.15
115.27
4
YNUSV3
ea.
$41.55
84.36
125.91
2
HMq45t
ea.
$92.90
188.62
281.52
3
SKX45v1
ea.
$122.90
249.52
372.42
4
LMX50-V
ea.
$151.60
307.79
459.39
4
MRSv55a
ea.
$99.05
201.10
300.15
4. Calculate the following:
 Socks:
$1.28 at cost.
 RP
$ 4.41
 $MU $ 3.13

Towels:

$4.08 at cost.
RP
$ 6.58
MU% = 71%
MU% = 38%
52
Copyright © Texas Education Agency, 2015. All rights reserved.

$MU
$ 2.50

Shelves:
$13.19 at cost.
 RP
$22.74
 $MU $ 9.55
MU% = 42%

Chairs:
$51.88 at cost.
 RP
$185.29
 $MU $133.41
MU% = 72%

Shovels:
$13.55 at cost.
 RP
$ 20.85
 $MU
$ 7.30
MU% = 35%

Hats:
$115.05 at cost.
MU% = 29%
 RP
$162.04
 $MU
46.99

Shorts:
$8.45 at cost.
MU% = 31%
 RP
$ 12.25
 $MU
$ 3.80

Suitcase:
$16.45 at cost.
 RP
$ 26.97
 $MU
10.52

Books:
$1.45 at cost.
 RP
$
 $MU

Boots:
MU% = 39%
MU% = 28%
2.01
.56
$52.00 at cost.
 RP
$ 78.79
 $MU
26.79
MU% = 34%
53
Copyright © Texas Education Agency, 2015. All rights reserved.
Complete the chart:
RETAIL PRICE
COST
$MU
MU%
$6.45
$2.18
$4.27
66%
$24.78
$19.33
$5.45
22%
$169.95
$107.29
$62.66
37%
$11,555.09
$8,355.09
$3,200
28%
$19.95
$6.78
$13.17
66%
$199.99
$109.99
$90.00
45%
$799.99
$400.00
$399.99
50%
$40.00
$15.50
$24.50
61%
$992.31
$645.00
$347.31
35%
$49.95
$34.29
$15.66
31%
(49.9%)
54
Copyright © Texas Education Agency, 2015. All rights reserved.