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Tips and Markups

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Solve each problem.

1. A bagel shop sold 81 of their 108 bagels on Monday. What percent of the bagels did they sell?

2. Keana has visited 19 of the 50 states in the U.S. What percent of the states has she visited?

3. Of the 20 students in a class, 14 wore tennis shoes to school today. What percent of the students wore tennis shoes?

Warm Up

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Solve each problem.

1. A bagel shop sold 81 of their 108 bagels on Monday. What percent of the bagels did they sell? 75%

2. Keana has visited 19 of the 50 states in the U.S. What percent of the states has she visited? 38%

3. Of the 20 students in a class, 14 wore tennis shoes to school today. What percent of the students wore tennis shoes? 70%

Warm Up

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7.RP.A.3

Use proportional relationships to solve multistep ratio and percent problems.

7.EE.A.2

Understand that rewriting an expression in different forms in a problem context can shed light on the problem and how the quantities in it are related.

Standards for Mathematical Content

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7.EE.B.3

Solve multi-step real-life and mathematical problems posed with positive and negative rational numbers in any form (whole numbers, fractions, and decimals), using tools strategically. Apply properties of operations to calculate with numbers in any form; convert between forms as appropriate; and assess the reasonableness of answers using mental computation and estimation strategies.

Standards for Mathematical Content

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MP1

Make sense of problems and persevere in solving them.

MP2

Reason abstractly and quantitatively.

MP3

Construct viable arguments and critique the reasoning of others.

Standards for Mathematical Practice

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MP4

Model with mathematics.

MP7

Look for and make use of structure.

Standards for Mathematical Practice

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Students will solve multi-step ratio and percent problems involving tips and markups.

Lesson Goal

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A tip, or gratuity, is an additional amount of money paid in return for a service. This amount is sometimes a percent of the service cost. The total amount paid is the cost of the service plus the tip.

Learn

Tips

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Example 1Tips

The bill for a group of eight people at a restaurant was $125 before the tip was added. The group wants to add an 18% tip.

What will be the total bill including the tip?

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Example 1Tips

Think About It!

What is a good estimate for the solution? Explain how you calculated the solution.

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Example 1Tips

Write a proportion. Then solve using ratio reasoning. Let t represent the amount of the tip.

Method 1 Use ratio reasoning.

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Example 1Tips

Add the tip to the bill. The total cost is $125 + $22.50, or $147.50.

amount of tip

amount of bill

 

Percent

Because 100 × 1.25 = 125, multiply 18 by 1.25 to find the value of t.

18 × 1.25 = 22.50, so, t = 22.50.

 

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Example 1Tips

Method 2 Use properties of operations. Let t represent the amount of the tip.

Add the tip to the bill. The total cost is $125 + $22.50, or $147.50. So, using either method, the total cost of the bill is $147.50.

Write the proportion.

Divide 18 by 100. A one-step equation results.

Multiplication Property of Equality

t = 22.50

Simplify.

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Example 1Tips

Talk About It!

How could you solve the problem another way?

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Check

Amy wants to tip her hairstylist 20% for a haircut that costs $48. What is her total bill with tip? Use any strategy.

Example 1Tips

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Check

Amy wants to tip her hairstylist 20% for a haircut that costs $48. What is her total bill with tip? Use any strategy.

$57.60

Example 1Tips

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In order to make a profit, stores typically sell items for more than what they pay for them. The amount the store pays for an item is called the wholesale cost. The amount of increase is called the markup. The selling price is the amount the customer pays for an item. The selling price is equal to the wholesale cost plus the markup.

selling price = wholesale cost + markup

Learn

Markup

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Example 2Markup

The wholesale cost for each shirt at a clothing store is $17. The store manager plans to mark up the shirts by 125%.

What will be the selling price for each shirt?

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Example 2Markup

Think About It!

What is a good estimate for the solution? Explain how you calculated that estimate.

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Example 2Markup

Write a proportion. Then solve using ratio reasoning. Let x represent the selling price.

Method 1 Use ratio reasoning.

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Example 2Markup

Add the markup to the wholesale cost. The selling price is $17 + $21.25, or $38.25.

amount of markup

wholesale cost

 

Percent

Because 100 × 0.17 = 17, multiply 125 by 0.17 by to find the value of x.

125 × 0.17 = 21.25, so, t = 21.25.

 

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Example 2Markup

Method 2 Use properties of operations.

Add the markup to the wholesale cost. The selling price is $17 + $21.25, or $38.25. So, using either method, the selling price is $38.25.

Write the proportion. Let x represent the markup.

Divide 125 by 100. A one-step equation results.

Multiplication Property of Equality

x = 21.25

Simplify.

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Example 2Markup

Talk About It!

Compare the wholesale cost with the selling price. How do you know the selling price is reasonable?

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Example 2Markup

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Example 2Markup

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Example 3Markup

Ben’s family is shopping for a new car. The selling price of a car is $24,199.50. Ben researches to find that the wholesale cost of the car is $22,100.00.

What is the percent of markup?

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Example 3Markup

Think About It!

What is a good estimate for the solution? Explain how you calculated that estimate.

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Example 3Markup

Step 1 Identify the part and the whole.

original amount = $22,100.00

This is the whole.

new amount = $24,199.50

This is the whole plus the part.

amount of increase = $2,099.50

This is the part.

Finding the percent of markup is the same as finding the percent of increase.

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Example 3Markup

Step 2 Find the percent of increase.

Write the part-to-whole ratio. The part is 2,099.50. The whole is 22,100.00.

= 0.095

Divide.

Write an equivalent ratio, as a rate per 100.

= 9.5%

Definition of percent

So, the percent of markup for the wholesale price of the car is 9.5%.

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Example 3Markup

Talk About It!

How is finding the percent of markup different than finding the selling price of an item?

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Check

Mikka is making jewelry for a craft show. The wholesale cost of a bracelet is $12.50. If she sells them for $20, what is the percent of markup?

Example 3Markup

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Check

Mikka is making jewelry for a craft show. The wholesale cost of a bracelet is $12.50. If she sells them for $20, what is the percent of markup?

60%

Example 3Markup

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Pause and Reflect

Compare and contrast tips and markups. Where have you seen or used tips and markups in your everyday life?

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ApplyDining Out

 

Pizza

$18.60

Salad

$2.50

Soda

$2.25

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ApplyDining Out

Talk About It!

What steps should you take before splitting the bill?

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Check

Brian has $24 worth of pizza delivered to his house. He pays the bill plus a 15% tip and 7% sales tax. He also pays a $3 delivery fee that is charged after the tax and tip. How much change does he receive, if he pays with two $20 bills?

ApplyDining Out

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Check

Brian has $24 worth of pizza delivered to his house. He pays the bill plus a 15% tip and 7% sales tax. He also pays a $3 delivery fee that is charged after the tax and tip. How much change does he receive, if he pays with two $20 bills?

$7.72

ApplyDining Out

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Pause and Reflect

Explain how tips and markups are percents of increase.

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Exit Ticket

Suppose you had lunch with a friend at a restaurant. The lunch cost $32.00, and sales tax was $4.45. If you plan to tip 20%, find the total amount you need to pay for lunch. Write a mathematical argument that can be used to defend your solution.

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Exit Ticket

Suppose you had lunch with a friend at a restaurant. The lunch cost $32.00, and sales tax was $4.45. If you plan to tip 20%, find the total amount you need to pay for lunch. Write a mathematical argument that can be used to defend your solution.

$42.85; Sample answer: Find 20% of $32.00, which is $6.40. Add $6.40 to $32.00, which is $38.40. Then add the sales tax of $4.45. $38.40 + $4.45 = $42.85

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