Grade 6 · The Market Year · Week 21

What a Discount Really Costs

Ten percent off the price is not ten percent off you. It is much more, and here is the arithmetic.

This game goes with week 21 of the workbook. Do the page first; the game is for seeing the numbers move. Nothing you type is kept.

How much more must you sell?

Price $4.00, cost $2.00. The 10 percent row is done: new price $3.60, new margin $1.60, 25 percent more sales.

20% off

25% off

50% off

One discount leaves you with no margin at all. Which?

Your own

Price $ , cost $ , and percent off.

New price $3.60. You gave away $0.40: 10% of the price, and 20% of your margin.

The share of your margin the discount takes. The cost does not move, so the whole discount comes out of here.

To make the same money you now need 25% more sales.

The workbook: The Market Year (free PDF). The teacher guide: answers and watch-fors.

Other weeks with a game: 3 Out of a Hundred, 4 Markup Is Not Margin, 10 Revenue Is a Formula, 11 Change the Price, Change the Line, 12 The Market Detective, 20 Pricing Against Somebody Else, 22 Bundles, 23 The Share You Are Going For, 31 Your Share of the Market, 35 Did the Move Work?. All games.