Lesson Title – Calculating Discounts Course – Marketing Grade Level – 10-12
Author – Roberto Ocana School – Overland Length of Lesson – 3 Block Periods
CTE Academic Integration Lesson Planner
What do I want students to learn?
Standards and Benchmarks
Standards and Benchmarks
NBEA Standards…or Mark Ed Standards…
or … ITEA Standards
ACT College Readiness Standards
IV. The Marketing Mix (NBEA)
Achievement Standard: Analyze the elements of the
marketing mix, their interrelationships, and how they
are used in the marketing process.
Score Range 16-19
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Solve routine one-step or two-step arithmetic problems
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Perform computations on data from tables and graphs
Score Range 20-23
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Solve routine two-step or three-step arithmetic problems
involving concepts such as rate and proportion, tax
added, percentage off, and computing with a given
average.
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Add and subtract simple algebraic expressions
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Calculate the missing data value, given the average and
all the data values but one.
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Evaluate algebraic expressions by substituting integers
for unknown quantities.
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Add and subtract simple algebraic expressions
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Solve routine first-degree equations
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Perform straightforward word-to-symbol translations
Score Range 24-27
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Manipulate data from tables and graphs
Solve real-world problems using first degree equations
Pricing - calculating prices, unit of the four P’s of
Marketing.
 Number and Operations - Compute fluently
and make reasonable estimates.
Students will:
Students will:
•Know: (Content and Vocabulary)
•Do: (Skills, Strategies, Processes and Literacy)
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Students will know key discount terms in order to
effectively be able to solve problems.
Students will know how to calculate discounts
and the net price payable.
Students will know how discounts affect the final
price a customer will pay.
Students will know how to utilize a general
procedure for figuring discounts.
Students will know how to calculate discounts in
dollars and percentages.
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Students will be able to use the basic discount
formulas for calculating discounts.
Students will be able to calculate price (P) and Net
Profit (NP) using the basic discount formulas.
Students will be able to solve real world discount
problems.
Enduring Understandings (Big Ideas)
For example… principles, themes, generalizations or macro-concepts
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Discounts are set with a specific company strategy in mind.
o They are used to encourage prompt payment and stimulate business.
Calculating discounts is an important skill that is used in figuring discounts offered by manufacturers to
retailers, employers, and retailers to customers.
Discount Formulas: P x D (%) = D($) & P – D ($) = NP
Essential Questions
Guiding, driving questions which lead to enduring understandings
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When did you last purchase a discounted item?
o Give examples of such and show how the discounted price determined was.
How are discounts calculated?
Why do manufacturers, wholesalers, employers, and retailers offer discounts?
How do discounts help a company stay financially successful?
o Loss leader – get customers in store to buy discounted items and then by others at full retail.
o Encourage customer to make prompt payments and stimulate additional business.
o Discounts help make room seasonal inventory.
Lesson Title – Calculating Discounts Course – Marketing Grade Level – 10-12
Author – Roberto Ocana School – Overland Length of Lesson – 3 Block Periods
How am I going to assess student learning?
Assessments: Formative assessments and/or Summative assessments
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Students will take a practice test, prior to taking the main test, in order to identify opportunity areas.
o Pre/Post-test assessment
Students will take a test that will cover vocabulary terms, real world problems, word problems, and discount
calculations.
Students will take notes, using the Cornell notes strategy.
Students will do daily warm-ups that will assess their knowledge/retention from the previous class lesson.
Students will solve practice problems in class and pair share with students.
Instructional Plan
Prerequisite Skills: Preparation
What prior knowledge, skills and understanding do the students need? How will you assess their background
knowledge and readiness?
Students should have prior knowledge of what discounts are and a basic understanding of how they are
calculated. Students should also have a basic understanding of algebraic expressions and percentages.
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Students will be given a pre-assessment to determine where the opportunity areas are.
Daily warm-ups and practice problems will be giving to assess background knowledge and
retention/readiness.
o Problems – Discount Formulas: P x D(%) = D($) or P – D($) = NP
 A manufacturer gives retailers a 55% trade discount. The invoice received by Oliver’s
Department Store totals $2,907.40. (a) What is the dollar amount of the store’s discount?
(b) What is the amount payable to the manufacturer?
 A manufacturer gives wholesalers discounts of 40% and 10%. The invoice received by
Industrial Wholesaler totals $193,300. What is the net amount payable to the
manufacturer?
 A manufacturer offers a retailer $3,775 as a promotional discount for advertising a certain
product. What is the percentage discount if the total invoice was $75,500?
 Regal Shoe Company offers retailers a 6% discount for placing orders by May 1. A
retailer takes advantage of the offer and purchases $117,344 worth of shoes by the cutoff
date. What is the net amount payable on the invoice?
Instruction and Activities:
What procedure (sequence), teaching strategies, and student activities are used in this lesson? State the student
roles, teacher roles, and grouping for this lesson.
Students will work individually as well as in groups of two or three depending on the activity.
First Day:
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Daily warm-up – see background knowledge and readiness above.
o Students will pair share answers with each other.
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Teacher will introduce the two basic discount formulas and their importance to running a successful business.
o Discount Formulas: P x D(%) = D($) or P – D($) = NP
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Teacher directed class discussion will ensue. Essential questions about discounts and its importance to the
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success of a business will be discussed. Students will then be put into groups and asked to answer the three
main guiding questions:
o How are discounts calculated?
o Why do manufacturers, wholesalers, employers, and retailers offer discounts?
o How do discounts help a company stay financially successful?
Students will then report out to class.
Students will work on practice problems that will focus on real world application.
o Examples:
 A $50,000 invoice has payment terms of 2/10, net 30. If the buyer takes advantage of the
discount, the net amount payable will be?
 Alliance Trucking receives an invoice in the amount of $325,000 showing the terms 2/10,
net 30. The invoice lists five trucks at $65,000 each. (a) If Alliance takes advantage of the
discount, what will be the net amount due on the invoice? (b) The net price per truck?
Lesson Title – Calculating Discounts Course – Marketing Grade Level – 10-12
Author – Roberto Ocana School – Overland Length of Lesson – 3 Block Periods
Second Day:
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Daily warm-up – see background knowledge and readiness above.
o Students will pair share with each other.
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Teacher directed class discussion/instruction.
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Louis Vuitton Case Study
The Vuitton Money Machine – Luxury Priced Right
o Louis Vuitton handbags and rivals Gucci, Prada, Coach, and Hermes price their handbags very high to attract
the luxury market. The Vuitton machine is running mighty smoothly right now. With $5 billion in annual
sales, it is about twice the size of runners-up Prada and Gucci. Vuitton maintained double-digit sales growth
and the industry’s fattest operating margins as rivals staggered through a global downturn that started early in
2001. That power was underscored in March 2003, when Vuitton reported a record-high 45 percent operating
margin. The industry average operating margin is 25 percent. Some Vuitton bags retail for $1,000 or more.
And no Vuitton bag is ever marked down.
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How is Louis Vuitton able to achieve operating margins that are 20 percent higher than the industry
average?
Answer: Because they never markdown their prices and parts of their operations are automated.
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Why is no Vuitton bag ever marked down?
Answer: Vuitton never discounts its products to attract the wealthy and luxury-minded customer.
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Lead a discussion about marketing techniques for luxury products versus other goods and services.
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Discussion should be around when companies should offer discounts and when they
should not. In addition, what do companies do to achieve higher operating margins?
o Put students in groups of three and have them report out to class.
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Students will take a practice quiz and grade each other’s work.
o Based on class performance on this quiz teacher will then give further instruction or give a test at the
beginning of the next block period.
Third Day:
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Review for the test. Answer any last minute questions regarding the test.
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Post-assessment
Lesson Title – Calculating Discounts Course – Marketing Grade Level – 10-12
Author – Roberto Ocana School – Overland Length of Lesson – 3 Block Periods
Academic Integration
What core academic topics are integrated? What terminology is common? What terminology is different?
Include specific examples to be used to introduce, teach, or review the topics.
The core academic topics that will be integrated into the lesson:
 Discount (percent decrease or cost)
 Net Price (cost)
 Solving real world problems
 Solve real world problems containing proportions and percentages
 Solve routine two-step or three-step arithmetic problems
 Add and subtract simple algebraic expressions
Specific ACT Readiness Examples:
1. A DVD player with a list price of $100 is marked down 30%. If John gets an employee discount
of 20% off the sale price, how much does John pay for the DVD player?
A. $86.00 B. $77.60 C. $56.00 D. $50.00 E. $44.00
2. A discount store takes 50% off of the retail price of a desk. For the store's holiday sale, it takes an
additional 20% off of all furniture. The desk's retail price was $320. How much is the desk on sale for
during the holiday sale?
A. $107 B. $114 C. $128 D. $136 E. $192
3. A mattress store sells their stock for 15% off of retail. If someone pays cash, they take an
additional 10% off of the discounted price. If a mattress's retail price is $750, what is the price after the
store discount and the cash discount?
A. $550.75 B. $562.50 C. $573.75 D. $637.50 E. $675.00
Resources
What materials and resources are needed for this lesson? Describe the learning environment where this lesson
will take place.
Math teacher to help with example problems and resources for math content.
Materials Needed:
 Marketing Essentials textbook.
 Student activity workbook with academic integration.
Learning Environment:
There will be a mixture of discussion, individual time and group time with this lesson.
Specific Teacher Web Resources:
Students will be able to get access of lesson through Cole.