This document discusses discounts and markups, which involve calculating percent decreases or increases. It provides examples of discounts being used at stores and markups being used at restaurants. The key steps for calculating discounts are to multiply the discount percentage by the original price and subtract that from the original price. For markups, the steps are to multiply the markup percentage by the original price and add that to the original price. Several examples are worked through and practice problems are provided for calculating discounts, markups, and final selling prices.

1. Discounts and Markups
Proportional Relationships (Unit 1, Topic 4, Lesson 4)
Mr. Schlichter’s Math 7 Class

2. Lesson Objectives
By the end of the lesson we will be able to…
- Calculate a percent decrease (or a discount)
- Calculate a percent increase (or a markup)
CCSS.MATH.CONTENT.7.RP.A.3
Use proportional relationships to solve multistep ratio and percent problems. Examples:
simple interest, tax, markups and markdowns, gratuities and commissions, fees, percent
increase and decrease, percent error.

3. What was the last
thing you bought
on sale?

4. Getting Started
Tell whether each situation represents an increase or
decrease in spending.
1. A $20 shirt is on sale for $16
2. The cost of a movie ticket in the afternoon is $6.50, and
$8.00 after 5:00 p.m.
3. An annual pass to Knott’s Berry Farm was $101 last year,
and $125 this year.
4. The cost of lunch yesterday was $5.50, and the cost of
lunch today is $5.25

5. Discounts & Markups
Stores frequently discount or markup items. Discounts involve
a percent decrease, markups involve a percent increase.
Discounts are subtracted from the original price.
Markups are added to the original price.
The selling price (or sale price) is the amount the customer
ends up paying.

6. Calculating a discount and selling price
1.Multiply the discount by the
original price.
2.Subtract the discount from
the original price.

7. You try discounts
The pie store is having a 20% off sale on all of its pies.
If the pie you want regularly costs $18, how much would you
save with the discount?

8. Discount Practice Solution

9. Calculating a markup and selling price
1.Multiply the markup by the
original price.
2.Add the markup to the
original price.

10. You try Markups
You just finished a great meal at a restaurant in Wisconsin.
The sales tax in Wisconsin is 5%.
After your $15 meal, how much will the bill be with tax
included?

11. Markup Practice Solution

12. Practice
Directions: Find the discount and markup for each, then find
the final selling price. Round to the nearest cent when
necessary.
1. Jeans: $56, 15% off

13. More practice
3. Bike: $295.49, 62% off

14. More Practice
5. Wedding Dress: $625, 3% markup

15. More Practice
7. Digital Camera: $250, 12% markup

16. More help
Check out this video to see another strategy to help you
solve the problems.

17. Exit ticket
What are other real-world examples of percent increase and
decrease?
When was the last time you had to calculate a percent
increase or decrease outside of class?
How did you calculate the transaction?