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# Setting a price

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### Setting a price

1. 1. Setting a Price!Why do we pay the prices that we do?<br />Review : Working with Per cents and Decimals<br />In this section, you will calculate percentages and convert between percents<br />and decimals.<br />
2. 2. Review<br />Convert 65% to a decimal.<br />Percent (%) means “out of 100,” so a percentage is a ratio with a<br />denominator of 100.<br />To convert a percentage to a decimal, first convert it to a fraction with a denominator of 100, then divide the numerator by the denominator.<br />65% means 65 out of 100, or as a fraction, 65<br /> 100<br />Divide 65 by 100 to get 65% as a decimal.<br />65 ÷ 100 = 0.65<br />65% is equal to 0.65.<br />
3. 3. Try these<br />1. Convert the following percentages to decimals.<br />a) 78%<br />b) 93%<br />c) 125%<br />d) 324% Click HERE for <br />e) 0.5% answer if you<br />f) 0.38% need to<br />g) 1.2%<br />h) 100%<br />
4. 4. Review Example 1<br />Calculate 20% of 45.<br />To find a percentage of a number, you can use proportional reasoning.<br />Let x represent 20% of 45. Use proportional reasoning to solve for x.<br />20 X<br /> 100 45<br />Click HERE to see solution<br />=<br />
5. 5. Review Example 2<br />What is 190% of 85?<br />Hint - If the percentage is larger than 100, then your answer will be larger than the number you started with.<br />Click HERE to see answer<br />
6. 6. Review Example 3<br />What percent is 5 of 20?<br />To calculate what percent one number is of another means that you need to determine what number out of 100 is equivalent to your ratio.<br />You are really being asked: “What number out of 100 is equivalent to 5 out of 20?”<br />Click HERE to view answer<br />
7. 7. New Skills: Working with Markups and Taxes<br />When a person owns a business, she usually buys merchandise at a wholesale price.<br />She then sells it at a higher price, called a retail price, in order to make a profit. The retail price is often determined by adding a certain percentage of the wholesale price to the wholesale price. The amount added is referred to as the markup.<br />Marnie owns a clothing store. Her standard markup is 85%. She bought a coat from the wholesaler at \$125.00.<br />a) What would the markup be?<br />b) How much would Marnie charge her customer for the coat?<br />
8. 8. Solution<br />Change the markup of 85% to a decimal.<br /> 85 ÷ 100 = 0.85<br />Multiply the wholesale price by the decimal amount of the markup.<br /> \$125.00 × 0.85 = \$106.25<br /> The markup is \$106.25.<br />Marniewould charge her customer the original price plus the markup.<br /> \$125.00 + \$106.25 = \$231.25<br />With a markup of 85%, Marnie would charge her customer \$231.25.<br />
9. 9. In purchases, in addition to the markup, taxes are usually added to the retail price.<br />There are three kinds of taxes that you may need to consider when purchasing items:Goods and Services Tax (GST), Provincial Sales Tax (PST), and Harmonized SalesTax (HST).<br />