MWA 10: 1.4 On Sale

1. On Sale!
Slide 1
When you go shopping, you often see that something is on sale
for a discounted price.
Businesses may use sales promotions to attract buyers.
Definition:
Promotion – an activity that increases awareness of a
product or attracts customers.

2. Discount vs Markup
Slide 2
Discount – the amount a price decreases by
– usually expressed as a decimal.
Discount LOWERS the price Markup RAISES the price
Note: Taxes are calculated using the sale price, not the original price.

3. Slide 3
Example 1:
A jacket is discounted by 25%. The original cost of the jacket
was $189.95. What will the sale price be before taxes?
Discount = original price x discount (as a decimal)
= 189.95 x 0.25
= 47.49 (rounded to 2 decimals)
Sale Price = original price – discount
= 189.95 – 47.49
= 142.46
Answer:
The sale price of the jacket will be $142.46.

4. Slide 4
Example 1:
A jacket is discounted by 25%. The original cost of the jacket
was $189.95. What will the sale price be before taxes?
Original price = 100%
Discount = 25%
= 100% – 25% = 75% = 0.75
Sale Price = original price x 0.75
= 189.95 x 0.75
= 142.46
Alternative Solution
Answer:
The sale price of the jacket will be $142.46.

5. Slide 5
Example 2:
Fred sells stereos. One of the stereos he sells has a price of
$115.58. This stereo is now on sale at 15% off. What will the
sale price be including 5% GST and 5% PST?
Discount = original price x discount
= 115.58 x 0.15
= 17.34 (rounded to 2 decimal places)
Sale Price = original price – discount
= 115.58 – 17.34
= 98.24
GST = sale price x 0.05
= 98.24 x 0.05
= 4.91 (rounded to 2 decimal places)
PST = 4.91 (same as GST)
Sale Price with taxes = 115.58 – 17.34 + 4.91 + 4.91 = $108.06
Answer:
The price of the stereo
including taxes will be
$108.06.

6. Slide 6
Example 2:
Fred sells stereos. One of the stereos he sells has a price of
$115.58. This stereo is now on sale at 15% off. What will the
sale price be including 5% GST and 5% PST?
100% original price – 15% sale
= 100% - 15% = 85% = 0.85
Sale Price = original price x 0.85
= 115.58 x 0.85
= 98.24
GST = sale price x 0.05
= 98.24 x 0.05
= 4.91 (rounded to 2 decimal places)
PST = 4.91 (same as GST)
Sale Price with taxes = 115.58 – 17.34 + 4.91 + 4.91 = $108.06
Alternative Solution
Answer:
The price of the stereo
including taxes will be
$108.06.