Project Title

Is a percent a percent?

 

Introduction

In today’s world, you are often confronted with advertisements for percent-off sales. In this project, you will explore various coupons offered by a retailer and determine how to save the most money on your purchases. Be prepared to become an expert coupon shopper!

 

Task

Working together with your group, you will explore the best way to purchase items from a sporting goods store.  Based on what you have learned, you will go on a shopping spree to purchase the most goods with a limited amount of money. Finally, you will analyze your shopping to help the storeowner figure out the best way to price his or her products.

 

Instructions

Solve each problem in order and save your work as you progress as you will create a professional presentation at the conclusion of the project.

 

1.      First problem:

 

·         You will be making several purchases at a sporting goods store. You can use an advertisement flyer from a store, make a trip to a local sporting store, or shop online.  You will need to have prices for at least six products with at least one or two higher priced items in the range of between $200 - $500. 

 

Record the relevant information in the chart below. 

 

                       

Item

Price per Item

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·         You were mailed a coupon for 20% off your purchases. Before you leave home, you want to make sure that you know the discounted price. Select two items from your price list and calculate the discounted price.

 

[Hint: 20% off is the same as paying for 80% of cost of the merchandise.]

 

·         You go to the local store to purchase your equipment and notice a sign at the front of the store stating that you can receive an additional 10% off all store items. When you checkout, you present your 20% off coupon and the store clerk states that both discounts can be used together. Select the same two items as before and calculate the new discounted price.

 

·         For the two items, use the new discounted price to calculate the actual percentage off that you received.

 

[Hint: First calculate the difference between the original price and the discounted price and then determine the percentage off. The formula would be:

 

 


2.      Second problem:

 

·         When you get home, you begin to wonder if it makes a difference which coupon is used first. You decide to calculate the cost if the order was reversed and the 10% coupon was used first and then the 20% off coupon. Decide if the order makes a difference and calculate the actual percentage off that you received. Be able to defend your idea. You may want to try calculations with several items.

 

·         You decide to purchase a big-ticket item (one that costs between $200 and $500), so you search the Internet and find multiple discount coupons (see table below). Some of these coupons can be used in combination with others. Consider the different coupons and their requirements listed in the table below.  List the possible combinations of coupons that may be used.

 

Coupon

Requirements

$25 off

Can only be used on items costing more than $200. Can be used with ONE other coupon. 

10% off

Can be used with other coupons.

20% off

Can be used with other coupons.

25% off

Cannot be used with any other coupons.

 

 

·         Determine the lowest price you can obtain on your big-ticket item.

 

[Hint: When using the $25 off coupon, the order may make a difference.]

 

3.      Third Problem:

 

·         With all of your purchases at the sporting goods store, you have won a contest that allows you to go on a spending spree. You will have $1000 to spend at the store and will be able to use each coupon only once. Using your price list from before and the available coupons determine how to spend the $1000. Be sure that you stay below $1000 with the discounts. You can purchase more than one of each item. Try to get the most for your money.

 

·         Determine the total value of the items you purchased and calculate the actual percent off that you received.  

 

4.      Fourth problem:

           

·         Finally, your group will use your coupon knowledge to make a presentation to the owner of the store to determine how best to manage coupon sales. Choose one big-ticket item on your price list to help you to calculate, for any coupon that applies, how prices could be marked up to offset the reduction in prices.  Fill in the Marked-Up Price column in the table below.

 

Coupon

Marked-Up Price

Percent of Original Price

$25 off

 

 

10% off

 

 

20% off

 

 

25% off

 

 

 

[Hint: For example, if you consider the 20% off coupon for an item that costs $299.99. You would then calculate (.8)x = $299.99. Then divide both sides by .8, which results in $374.99. The storeowner should price the item at $374.99, so the discount takes the price back down to $299.99.]

 

·         Next, determine the actual percent mark-up for each of the coupons. Fill in the Percent of Original Price column in the table above.

 

[Hint: For example, when the $299.99 item was marked up to $374.99, which results in (374.99/299.99) = 1.25 or 125% of the price or a 25% mark-up. The formula would be:

 

 

·         Finally, using your list of possible coupon combinations from Question # 2, determine marked-up price and percent of original price for your big-ticket item.  (You have already made the calculations for the single coupons above.)  Make a table for the storeowner, so he or she can understand the different combinations and how prices should be marked up.

 

Collaboration

Get together with another group to compare your answers to each of the four problems.  Discuss how your group decided to spend the $1000 in the spending spree.  Exchange your list of items with the other group and see if you can come up with a purchase plan that saves them more money.

 

Discuss your plans to help the storeowner. Some groups may have chosen to eliminate using certain coupons or not allowing coupons to be combined on purchases. 

·        If you owned a store, how could you promote discounts and still make money?

·        What is a reasonable discount?  Does the overall price matter?

·        What is the difference between dollar-amount coupons and percent-off coupons?

·        Is sales tax computed on the original or discounted price?  Does it change how the discounts should be applied?

·        Do some Internet research to determine how much your state charges in sales tax. Include the sales tax in your presentation to the storeowner.  

 

Conclusions

Your presentation to the owner of the store should demonstrate how coupons influence pricing. It should be on a poster board highlighting the differences in coupons. It should include all of the mathematics used to solve the four problems above.  You may either neatly write out the tables or use software such as Microsoft Word to create a professional computer generated product.  You may want to include pictures of the actual items to make it colorful.

 


 

Grade

Your project will be given a score of 1 to 4, with 4 being the highest score possible. You will be evaluated based on the following criteria:

 

Score

Content

Presentation

4

Your project appropriately answers each of the problems.  Your percents are set up properly.  The step-by-step solution to each problem is given. 

 

Your project correctly identifies all of the possible coupon combinations, the lowest price possible based on the coupons, the correct total under $1000 for the Shopping Spree with coupons, the best way for a store owner to mark-up prices, and justifies the decision mathematically.

Your project contains information presented in a logical and interesting sequence that is easy to follow.

 

Your project is professional looking with graphics and effective use of color. 

 

3

Your project answers each of the problems.  Your percents are set up and step-by-step solutions are given.  Minor errors may be noted. 

 

Your project identifies all of the possible coupon combinations, the lowest price possible based on the coupons, the correct total under $1000 for the Shopping Spree with coupons, the best way for a store owner to mark-up prices, and justifies the decision mathematically. Minor errors may be noted.

Your project contains information presented in a logical sequence that is easy to follow.

 

Your project is neat with graphics and effective use of color. 

 

2

Your project attempts to answer each of the problems. Percents are attempted and solutions are given.  Major errors are noted. 

 

Your project attempts to identify all of the possible coupon combinations, the lowest price possible based on the coupons, the correct total under $1000 for the Shopping Spree with coupons, the best way for a store owner to mark-up prices, and justifies the decision mathematically. Major errors are noted.

Your project is hard to follow because the material is presented in a manner that jumps around between unconnected topics.

 

Your project contains low quality graphics and colors that do not add interest to the project.

1

Your project attempts to answer some of the problems. Some percents are attempted and solutions are given.  Major errors are noted. 

 

Your project attempts to identify all of the possible coupon combinations, the lowest price possible based on the coupons, the correct total under $1000 for the Shopping Spree with coupons, the best way for a store owner to mark-up prices, and justifies the decision mathematically. Major errors are noted.

Your project is difficult to understand because there is no sequence of information.

 

Your project is missing graphics and uses little to no color.


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