Math
Practicum in Marketing Dynamics
Marketing
Lesson Plan
Performance Objective
Upon completion of this lesson, each student will calculate assorted discounts and markups.
Specific Objectives
 Students will explain the concepts of cost, dollar mark up, 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 mark-up percentage is calculated.
This lesson should take 10-12 class days to complete, unless the teacher decides to teach the discount
material separately from mark-up.
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.
§130.348. Practicum in Marketing Dynamics
(c) Knowledge and skills.
(28) The student knows that a buying plan identifies products to be offered for sale for a particular
period of time. The student is expected to:
(A) describe and calculate merchandising-related discounts;
(C) calculate the final cost of a product.
(33) The student demonstrates mathematics knowledge and skills required to pursue the full-range of
postsecondary education and career opportunities. The student is expected to:
(A) demonstrate use of relational expressions such as equal to, not equal to, greater than, and
less than;
(B) apply data and measurements to solve a problem;
(C) analyze mathematical problem statements for missing or irrelevant data;
Interdisciplinary Correlations
§110.47 Reading I, II, III
(b) Knowledge and skills.
(1) The student uses a variety of word recognition strategies. The student is expected to:
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(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;
(2) The student acquires an extensive vocabulary through reading and systematic 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;
(4) The student comprehends texts 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.
§110.57 Public Speaking I, II, III
(b) Knowledge and skills.
(4) Organization. The student organizes speeches. The student is expected to:
(B) Organize speeches effectively for specific topics, purposes, audiences, and occasions;
(5) Proofs and appeals. The student uses valid proofs and appeals in speeches. The student is expected to:
(A) Analyze the implications of the audience, occasion, topic, and purpose as a basis for
choosing proofs and appeals for speeches;
(6) Style. The student develops skills in using oral language in public speeches. The student is expected to:
(D) Use informal, standard, and technical language appropriately;
(7) Delivery. The student uses appropriate strategies for rehearsing and presenting speeches. The student
is expected to:
(E) Interact with audiences appropriately
Tasks
 Students will secure signatures on all forms, as specified by the teacher.
 Students will return all paperwork in a timely manner.
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
 Have multimedia presentations ready to show
Instructional Aids
 Student Notes sheet
 Student worksheets
Materials Needed
 Copies
 pencils
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Equipment Needed
 Teacher computer
 Projector (for 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?
 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 mark up 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.
Outline
MI
Outline
I. Discounts
II. Advantages
III. Types of Discounts
A. Seasonal
B. Quantity
C. Cumulative Quantity
D. Chain
E. Cash
1. Terms
2. ROG & EOM
IV. Pricing
V. Formulas
VI. Wait, I’m Confused
VII. Keystone Pricing
VIII. More formulas
I.
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Instructor Notes
The teacher has the discretion to teach
Discounts and Markups back to back or
separate them.
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 3
All them
Rights
Reserved.
craft
5 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
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
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Math: Discounts
Student Notes Outline KEY
OBJECTIVES:
1. Calculate an assortment of discounts
2. Assimilate a retail environment through use of word problems in calculating assortments of
discounts
3. Demonstrate knowledge of correct procedures in calculating cash/trade discounts
4. Demonstrate understanding of trade/cash discounts by calculating EOM and ROG terms
5. Demonstrate proficiency with math calculations
6. 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 6 MONTHS in advance
Deep SAVINGS for merchants w/STORAGE.
– Buy LARGE QUANTITIES and store in WAREHOUSE
2. QUANTITY
The MORE units ORDERED, the more $$ SAVED.
– Incentive to PURCHASE MASS QUANTITIES
3. CUMULATVE QUANTITY
A RUNNING total is kept so DISCOUNT INCREASES as more orders are placed
4. CHAIN
Expressed as:
– Less 15%, 10%, 5% (percentages will vary)
**DO NOT add PERCENTAGES before taking DISCOUNT
**Take each percentage SEPARATELY from BALANCE!
Example of Chain Discount:
A tire manufacturer sells radial tires for $85, less 15%, 9%, 4%.
$85.00 x .15 = $12.75
$72.25 x .09 = $6.50
$85.00 - $12.75 = $72.25
$72.25 - $6.50 = $65.75
$65.75 x .04 = $2.63
$65.75 – 2.63 = $60.42
5. TRADE CREDIT/CASH DISCOUNTS
• Allows MERCHANT to sell merchandise prior to billing
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•
•
•
•
Gives EXTRA time to generate PROFIT
Most companies deal with more than one VENDOR
Bills are PAID as terms MATURE
Shown on INVOICE as “Terms:”
Note: Each numeral in the equation may vary
Expressed as: 2/15, n/60 or 2/15, net 60 or 2/15, n60
Interpreted as: 2% discount if paid within 15 days of the date of the invoice;All is due 60 days from date
of invoice, if the discount is not taken.
Example:
Invoice Amount: $599.65
Date of Invoice: Nov. 12, 2013
Terms:
3/10, n/60
When does the discount deadline end? Nov. 22
When is the final payment due if discount is not taken? Jan 11
What is the amount payable w/discount? $581.66
What is the discount amount in $$? $17.99
Do You Know How Many Days are in Each Month????????
Use the knuckle method
– Make a fist and look at your knuckles.
– The first knuckle is “January”, then 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 its “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.
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•
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.
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Copyright © Texas Education Agency, 2015. All Rights Reserved.
Math: Discounts
Student Notes Outline
OBJECTIVES:
1. Calculate an assortment of discounts
2. Assimilate a retail environment through use of word problems in calculating assortments of
discounts
3. Demonstrate knowledge of correct procedures in calculating cash/trade discounts
4. Demonstrate understanding of trade/cash discounts by calculating EOM and ROG terms
5. Demonstrate proficiency with math calculations
6. 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 $$ _____________
– Incentive to __________________________________________
3. ___________________ __________________
•
A ______________ total is kept so ______________ _______________ as more orders
are placed
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4. ___________
Expressed as:
– Less 15%, 10%, 5% (percentages will vary)
**DO NOT add ___________________ before taking ________________
**Take each percentage _________________ from ________________
Example of Chain Discount:
A tire manufacturer sells radial tires for $85, less 15%, 9%, 4%.
Calculate the problem:
5. _______________________
•
•
•
•
•
Allows ____________________ to sell merchandise prior to billing
Gives __________ time to generate ____________
Most companies deal with more than one ____________
Bills are ________ as terms ____________
Shown on ____________ as “Terms:”
Note: Each numeral in the equation may vary
Expressed as:
2/15, n/60 or 2/15, net 60 or 2/15, n60
Interpreted as:
_____% discount if paid w/in _____ days of invoice;
All is due ______ days from date of invoice
Example:
Invoice Amount: $599.65
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Date of Invoice: Nov. 12, 2004
Terms:
3/10, n/60
When does the discount deadline end? __________
When is the final payment due if discount is not taken? ____________
What is the amount payable w/discount? ___________
What is the discount amount in $$? _________
•
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”, then “___________” 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 its “__________”; 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.
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 “_______________”
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– 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_______________________________.
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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!
1. Date of Invoice:
Purchase amount:
Terms:
11/16/13
$6,789.50
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
________________________
2. Date of Invoice:
Purchase amount:
Terms:
11/20/13
$25,759
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
________________________
3. Date of Invoice:
Purchase amount:
Terms:
Date paid:
12/15/13
$559.60
2/10, N60
12/31/13
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Date due to take discount:
________________________
Amount payable w/discount:`
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
4. Date of Invoice:
Purchase amount:
Terms:
11/29/13
$25.75
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
________________________
5. Date of Invoice:
Purchase amount:
Terms:
Date paid:
1/17/13
$12,755.90
4/15, N90
2/28/ 13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
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6. Date of Invoice:
Purchase amount:
Terms:
1/15/13
$29,667
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
________________________
7. Date of Invoice:
Purchase amount:
Terms:
2/14/13
$459.20
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
________________________
8. Date of Invoice:
Purchase amount:
Terms:
Date paid:
3/15/13
$29,875
4/20, N60
3/31/13
Date due to take discount:
________________________
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Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
9. Date of Invoice:
Purchase amount:
Terms:
3/12/13
$65,790
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
________________________
10. Date of Invoice:
Purchase amount:
Terms:
4/20/13
$452.79
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
________________________
11. Date of Invoice:
Purchase amount:
Terms:
3/10/13
$3,472.77
3/15, N60
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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
________________________
12. Date of Invoice:
Purchase amount:
Terms:
2/10/13
$19.065.57
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
________________________
13. Date of Invoice:
Purchase amount:
Terms:
Date paid:
11/20/13
$4,099.97
2/10, N90
12/2/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
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14. Date of Invoice:
Purchase amount:
Terms:
8/11/13
$995.04
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
________________________
15. Date of Invoice:
Purchase amount:
Terms:
9/2/13
$55.90
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
________________________
16. Date of Invoice:
Purchase amount:
Terms:
Date paid:
4/20/13
$325.45
3/10, N30
5/1/13
Date due to take discount:
________________________
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Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
17. Date of Invoice:
Purchase amount:
Terms:
1/6/13
$78.97
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
________________________
18. Date of Invoice:
Purchase amount:
Terms:
Date paid:
10/20/13
$1,673.23
2/10, N30
10/29/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
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19. Date of Invoice:
Purchase amount:
Terms:
9/13/13
$555.15
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
________________________
20. Date of Invoice:
Purchase amount:
Terms:
7/31/13
$2,714.50
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
________________________
21. Date of Invoice:
Purchase amount:
Terms:
Date paid:
11/30/13
$766.45
3/15, N60 EOM
1/10/13
Date due to take discount:
________________________
Amount payable w/discount: ________________________
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Date due without discount:
________________________
Amount saved by taking discount
________________________
22. Date of Invoice:
Purchase amount:
Terms:
6/26/13
$85.95
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
________________________
23. Date of Invoice:
Purchase amount:
Terms:
4/20/13
$677.50
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
________________________
24. Date of Invoice:
Purchase amount:
Terms:
7/27/13
$672.13
4/15, N60 EOM
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Date paid:
8/12/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
25. Date of Invoice:
Purchase amount:
Terms:
Date paid:
8/10/13
$199.80
2/10, N30 ROG
8/18/13
Date due to take discount:
________________________
Amount payable w/discount:
________________________
Date due without discount:
________________________
Amount saved by taking discount
________________________
21
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Math KEY
Discounts
Calculate the following problems. You may use your notes if you need to. Don’t just copy your
neighbor’s answer!!!
1. Date of Invoice:
Purchase amount:
Terms:
11/16/13
$6,789.50
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
2. Date of Invoice:
Purchase amount:
Terms:
11/20/13
$25,759
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
3. Date of Invoice:
Purchase amount:
Terms:
Date paid:
12/15/13
$559.60
2/10, N60
12/31/13
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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
4. Date of Invoice:
Purchase amount:
Terms:
11/29/13
$25.75
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
5. Date of Invoice:
Purchase amount:
Terms:
1/17/13
$12,755.90
4/15, N90
Date paid:
2/28/14
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
6. Date of Invoice:
Purchase amount:
Terms:
Date paid:
1/15/13
$29,667
2/10, N30
1/25/13
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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
7. Date of Invoice:
Purchase amount:
Terms:
2/14/13
$459.20
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
8. Date of Invoice:
Purchase amount:
Terms:
3/15/13
$29,875
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
9. Date of Invoice:
Purchase amount:
Terms:
Date paid:
3/12/13
$65,790
3/10, N45
3/21/13
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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
10. Date of Invoice:
Purchase amount:
Terms:
4/20/13
$452.79
3/15, N90
Date paid:
5/2/13
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
11. Date of Invoice:
Purchase amount:
Terms:
3/10/14
$3,472.77
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
12. Date of Invoice:
Purchase amount:
Terms:
2/10/14
$19.065.57
3/10, N90
25
Copyright © Texas Education Agency, 2015. All Rights Reserved.
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
13. Date of Invoice:
Purchase amount:
Terms:
11/20/14
$4,099.97
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
14. Date of Invoice:
Purchase amount:
Terms:
Date paid:
8/11/13
$995.04
3/10, N45
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
26
Copyright © Texas Education Agency, 2015. All Rights Reserved.
15. Date of Invoice:
Purchase amount:
Terms:
9/2/13
$55.90
2/15, N60
Date paid:
9/12/13
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
16. Date of Invoice:
Purchase amount:
Terms:
4/20/13
$325.45
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
17. Date of Invoice:
Purchase amount:
Terms:
Date paid:
1/6/13
$78.97
3/10, N30
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
27
Copyright © Texas Education Agency, 2015. All Rights Reserved.
18. Date of Invoice:
Purchase amount:
Terms:
10/20/13
$1,673.23
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
19. Date of Invoice:
Purchase amount:
Terms:
9/13/13
$555.15
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
20. Date of Invoice:
Purchase amount:
Terms:
Date paid:
7/31/13
$2,714.50
3/10, N60
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
28
Copyright © Texas Education Agency, 2015. All Rights Reserved.
21. Date of Invoice:
Purchase amount:
Terms:
11/30/13
$766.45
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
22. Date Received:
Purchase amount:
Terms:
6/26/13
$85.95
3/15, N30 ROG
Date paid:
7/12/13
Date due to take discount:
7/11/13
Amount payable w/discount: $83.37
Date due without discount:
7/26/13
Amount saved by taking discount
$2.58
23. Date of Invoice:
Purchase amount:
Terms:
Date paid:
4/20/13
$677.50
2/10, N30 EOM
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
29
Copyright © Texas Education Agency, 2015. All Rights Reserved.
24. Date of Invoice:
Purchase amount:
Terms:
7/27/13
$672.13
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
25. Date of Invoice:
Purchase amount:
Terms:
8/10/13
$199.80
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
30
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Math: Discounts Part 1 Adjust according to subject
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
$
%
31
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%
9%
12%
14%
17%
20%
1-10
21-35
36-45
46-55
56-70
71-80
81-90
91-100
ITEM
QUANTITY
PURCHASED
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
32
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Math: Discounts Part 1
Worksheet
ANSWER KEY
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%
33
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%
9%
12%
14%
17%
20%
1-10
21-35
36-45
46-55
56-70
71-80
81-90
91-100
ITEM
QUANTITY
PURCHASED
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.
$
$
$2.60 ea.
$ 49.40
Backpacks
95
5.60
27.33
$ 197.60
34
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Math TEST: Discounts ADJUST ACCORDING TO SUBJECT
1. You purchase 3 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:
a. Deadline for discount period
_______________________________
b. Discount amount
$_______________________________
c. Deadline for full payment
_______________________________
d. Amount saved with discount
$_______________________________
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:
a. Deadline for discount period
_______________________________
b. Discount amount
$______________________________
c. Deadline for full payment
_______________________________
d. Amount saved with discount
$______________________________
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:
a. Deadline for discount period
_______________________________
b. Discount amount
$_______________________________
c. Deadline for full payment
_______________________________
d. Amount saved with discount
$_______________________________
4. You purchase a printer for $749.99, less 9%, 7%, 6%. What is the final price for the printer?
a. __________________
5. You purchase the following office furniture:
a. Desk
$ 750
b. Chair
300
c. Filing cabinet 150
d. 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? $______________
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:
a. Seasonal discount amount
$_______________________
b. Deadline for discount
________________________
35
Copyright © Texas Education Agency, 2015. All Rights Reserved.
c. Discount amount
d. Full payment amount
e. Amount saved after all discounts
$_______________________
$_______________________
$_______________________
7. The following items were ordered on January 13, 2013:
a. 23 lamps @ $17.50 each
b. 12 tables @ $75.00 each
c. 3 couches @ $210.00 each
d. 6 recliners @ $180 each
e. 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%.
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
f.
g.
h.
i.
j.
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?
a. $____________________
8. Find the answers: (2 pts. for each blank)
ITEM
Shoes
Boots
Shoelaces
Shoe polish
Purses
Purses
PRICE
$23.65
$51.50
.70
.84
$22.75
$ 8.50
QUANTITY
22.00 pairs
14 pair
8 doz.
10 doz.
9 ea.
10 ea.
TOTAL
_______
_______
_______
_______
_______
_______
36
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Math TEST KEY: Discounts
1. You purchase 3 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:
a.
b.
c.
d.
Deadline for discount period
Discount amount
Deadline for full payment
Amount paid with discount
July 28, 2013
18.00
September 11, 2013
$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:
e.
f.
g.
h.
Deadline for discount period
Discount amount
Deadline for full payment
Amount paid with discount
May 19, 2013
$1249.44
August 7, 2013
$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:
i.
j.
k.
l.
Deadline for discount period
Discount amount
Deadline for full payment
Amount paid with discount
March 18
$1249.44
April 17
$900.02
4. You purchase a printer for $749.99, less 9%, 7%, 6%. What is the final price for the printer?
m. $596.63
5. You purchase the following office furniture:
n. Desk
$750
o. Chair
300
p. Filing cabinet 150
q. 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
37
Copyright © Texas Education Agency, 2015. All Rights Reserved.
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:
r. Seasonal discount amount
$67.25
s. Deadline for discount
July 13
t. Discount amount
$24.21
u. Full payment amount
$605.21
v. Amount saved after all discounts
$91.45
7. The following items were ordered on January 13, 2014:
w. 23 lamps @ $17.50 each
x. 12 tables @ $75.00 each
y. 3 couches @ $210.00 each
z. 6 recliners @ $180 each
aa. 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
bb. When is the discount deadline? March 15
cc. When is the full payment due? April 29
dd. Amount paid if discount is taken $2,675.74
ee. Amount to be saved with the discount $111.49
ff. What is the TOTAL dollar amount saved with all discounts considered?
a. $1,057.76
8. Find the answers: (2 pts. for each blank)
ITEM
Shoes
Boots
Shoelaces
Shoe polish
Purses
Purses
PRICE
$23.65
$51.50
.70
.84
$22.75
$ 8.50
QUANTITY
22 pair
14 pair
8 dozen
10 doz.
9 ea.
10 ea.
Markups
TOTAL
$520.30
$721.00
$ 67.20
$100.80
$204.75
$ 85.00
38
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Complete the following chart. Remember to include your $$$ and %%% where necessary!
ADJUST ACCORDING TO SUBJECT
Retail Price
Cost
$4,597.50
$1,665.00
$ 995.99
$ 445.75
$
$ Mark Up
1.75
$
$3,667.55
$
$
$1,055.99
2.95 each
$
4.99 each
.85
$ 775.50
$225.75
$
.95
$5,550.45
.95
Markup %
$ 359.25
$ 9.50/ doz.
39
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Find the information needed to complete the problems below:
I. The cost of a suit is $174.55. It retails for $299.99. Determine the $MU and the MU%
$MU=
MU%=
II. A DVD player costs $75.00. You mark it up $144.00. Determine the RP and the MU%
RP=
MU%=
III. The following shipment arrives. You will need to price the merchandise and move it to the sales
floor.
4 shirts @ $15.50 ea. (cost)
$MU $22.50
RP (each) =
MU%=
40
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Markups KEY
Complete the following chart. Remember to include your $$$ 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.)
Find the information needed to complete the problems below:
41
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= $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%)
42
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Markups Practice
Calculate the following information where needed:
1. You purchase 1 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?
a. $MU
b. MU%
c. Total purchase
d. Total amount of profit
2. Ice Cream Sundaes retail for $3.99 each. Each one costs you $.92 to make. Find the $MU and
the MU%:
a. $MU:
b. MU%:
3. You purchase 2 dozen tires to sell in your store. You plan to mark up 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
4. Calculate the following:
a. Socks:
$1.28 at cost.
 RP
______
 $MU ______
b. Towels:
$4.08 at cost.
 RP
______
 $MU ______
MU% = 71%
MU% = 38%
43
Copyright © Texas Education Agency, 2015. All Rights Reserved.
c. Shelves:
$13.19 at cost.
 RP
______
 $MU ______
MU% = 42%
d. Chairs:
$51.88 at cost.
 RP
______
 $MU ______
MU% = 72%
e. Shovels:
$13.55 at cost.
 RP
______
 $MU
______
MU% = 35%
f. Hats:
$115.05 at cost.
 RP
______
 $MU
______
MU% = 29%
g. Shorts:
$8.45 at cost.
MU% = 31%
 RP
______
 $MU
______
h. Suitcase:
$16.45 at cost.
MU% = 39%
 RP
______
 $MU
______
i.
Books:
$1.45 at cost.
MU% = 28%
 RP
______
 $MU
______
j.
Boots:
$52.00 at cost.
MU% = 34%
 RP
______
 $MU
______
44
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
45
Copyright © Texas Education Agency, 2015. All Rights Reserved.
Markups Practice KEY
Calculate the following information where needed:
1. You purchase 1 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?
k. $MU
$ 161.99
l. MU%
58%
m. Total purchase
$1,416.00
n. 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%:
o. $MU:
$3.07
p. MU%:
77%
3. You purchase 2 dozen tires to sell in your store. You plan to mark up 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:
q. Socks:
$1.28 at cost.
 RP
$ 4.41
 $MU $ 3.13
r. Towels:
$4.08 at cost.
 RP
$ 6.58
 $MU $ 2.50
MU% = 71%
MU% = 38%
46
Copyright © Texas Education Agency, 2015. All Rights Reserved.
s. Shelves:
$13.19 at cost.
 RP
$22.74
 $MU $ 9.55
MU% = 42%
t. Chairs:
$51.88 at cost.
 RP
$185.29
 $MU $133.41
MU% = 72%
u. Shovels:
$13.55 at cost.
 RP
$ 20.85
 $MU
$ 7.30
MU% = 35%
v. Hats:
$115.05 at cost.
MU% = 29%
 RP
$162.04
 $MU
46.99
w. Shorts:
$8.45 at cost.
MU% = 31%
 RP
$ 12.25
 $MU
$ 3.80
x. Suitcase:
$16.45 at cost.
MU% = 39%
 RP
$ 26.97
 $MU
10.52
y. Books:
$1.45 at cost.
 RP
$
 $MU
z. Boots:
MU% = 28%
2.01
.56
$52.00 at cost.
MU% = 34%
 RP
$ 78.79
 $MU
26.79
47
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%)
48
Copyright © Texas Education Agency, 2015. All Rights Reserved.