Chapter 6: Percents

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42430_Cleaves_ch06 4/12/04 1:22 PM Page 173 Insurance • Credit • Loan • Bank Statement Percents Net Price • List Price • Trade Discount Cash Discount • Markup • Markdown Buy a Coke—Get a Cool Cell Phone Jingle! Coca-Cola reported $5,054 million net operating revenues in Asia in 2002, up from $4,861 million in 2001.The increase in sales is impressive when you consider the conditions. In Japan, where Coca-Cola makes 27% of its Asian sales, the economy has been sluggish, grocery store price competition has been fierce, and vending machine sales are declining.The vending machine share of total beverage sales decreased from 36% in 1995 to 32% in 2003, while the supermarket sales portion of total beverage sales grew from 24% to 28% in the same time period. Coca-Cola’s under-30 target market is slowly aging and 50% of Japan’s population will be over 50 by 2025.To combat these trends and keep sales strong, Coca-Cola has introduced the Cmode wireless vending machine in Japan. Cmode machines allow users to purchase or obtain free coupons, maps, and tickets printed by the printer in the vending machine, pay cash into the user’s Cmode account, obtain reward points for purchases, and download a variety of information into the user’s mobile phone.A strategy aimed at young consumers offers a Coca-Cola jingle download for a cell phone tone with the purchase of a beverage. So far, this promotional strategy has proved successful in increasing vending machine sales in Japan. Do you think the Cmode vending machine can be a hit in the United States? If 27% of Coca-Cola’s Asian sales are in Japan, how many dollars is that? What is the percentage decrease in vending machine sales from 1995 to 2003? Sources: 1.“Coke Lures Japanese Customers with Cellphone Come-Ons,” Wall Street Journal, Monday, September 8, 2003, p. B1. 2. www2.coca-cola.com/investors/annualreport/2002. Learning Outcomes 6-1 Percent Equivalents 1. Write a whole number, fraction, or decimal as a percent. 2. Write a percent as a whole number, fraction, or decimal. 6-2 Solving Percentage Problems 1. Identify the rate, base, and portion in percent problems. 2. Use the percentage formula to find the unknown value when two values are known. 6-3 Increases and Decreases 1. Find the amount of increase or decease in percent problems. 2. Find the new amount directly in percent problems. 3. Find the rate or the base in increase or decrease problems.
42430_Cleaves_ch06 4/12/04 1:22 PM Page 174 6-1 Percent Equivalents Learning Outcomes 1 Write a whole number, fraction, or decimal as a percent. 2 Write a percent as a whole number, fraction, or decimal. Percent: a standardized way of expressing quantities in relation to a standard unit of 100 (hundredth, per 100, out of 100, over 100). With fractions and decimals, we compare only like quantities, that is, fractions with common denominators and decimals with the same number of decimal places. We can standardize our representation of quantities so that they can be more easily compared. We standardize by expressing quantities in relation to a standard unit of 100. This relationship, called a percent, is used to solve many different types of business problems. The word percent means hundredths or out of 100 or per 100 or over 100 (in a fraction). That is, 44 percent means 44 hundredths, or 44 out of 100, or 44 per 100, or 44 over 100. We can write 44 44 hundredths as 0.44 or 100. The symbol for percent is %. You can write 44 percent using the percent symbol: 44%; using fractional notation: ; or using decimal notation: 44 0.44. 100 44% = 44 percent = 44 hundredths = 44 = 0. 44 100 mixed percents: percents with mixed numbers. Percents can contain whole numbers, decimals, fractions, mixed numbers, or mixed decimals. Percents with mixed numbers and mixed decimals are often referred to as mixed percents. Examples are 33 %, 0. 05 %, and 023 . 1 3 %. 1 3 3 4 1 Write a whole number, fraction, or decimal as a percent. The businessperson must be able to write whole numbers, decimals, or fractions as percents, and to write percents as whole numbers, decimals, or fractions. First we examine writing whole numbers, decimals, and fractions as percents. Hundredths and percent have the same meaning: per hundred. Just as 100 cents is the same as 1 dollar, 100 percent is the same as 1 whole quantity. 100% 1 This fact is used to write percent equivalents of numbers, and to write numerical equivalents of percents. It is also used to calculate markups, markdowns, discounts, and numerous other business applications. When we multiply a number by 1, the product has the same value as the original number. N 1 N. We have used this concept to change a fraction to an equivalent fraction with a higher denominator. For example, 2 1 2 1 = and × = 2 2 2 We can also use the fact that N 1 N to change numbers to equivalent percents. 2 4 Points to Stress N , and N = 1 100 = 1 N 1 N are mathematical concepts that are often used to change the form of a value. It is important to understand that the value is not changed by multiplying by 100%. 1 1 100% 1 = 100% × 100% = × = 50% 2 2 1 05 . × 100% = 050.% = 50% In each case when we multiply by 1 in some form, the value of the product is equivalent to the value of the original number even though the product looks different. 1 50 , % Write 0.3 as a percent. How To Write a number as its percent equivalent 1. Multiply the number by 1 in the form of 100%. 2. The product has a % symbol. 0.3 0.3 100% 030.% 30% 174 Chapter 6
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Chapter 6: Percents

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