Tips and Markups

• POD

As students enter the room, they will have a seat, take out their Problem of the Day (POD) sheet and begin to work on the question on the SMARTboard. The POD allows students to use MP 3 continually based on the discussions we have about the problem each day.

• Learning Target

The target for the day is also on the SMARTboard each day when students enter the room.  The target for today’s lesson is for students to simplify expressions they are given.

Having done work with sales tax, students are familiar with finding the sales tax and total cost of an item. I want to introduce them to the idea of leaving a tip and finding the amount of markup. To start the discussion, the POD today will be to identify what my students already know about tips and markups.

If it costs Nike about $16 to make one pair of Air Jordans and the shoes cost about $190 before tax, what percent increase is this? What is this increase called?

What is the difference between a tip and a markup? Are there differences between the way to find a tip and a markup?

To explore the differences and similarities between tips and markups, I will show students several examples of problem situations to continue discussion about tips, markups, and the ways to find amounts associated with both. As we walk through the examples, discussion will center around how students know and what they know about finding a tip. I am anticipating a rich discussion about why tips are important and how markup applies to business.