Author:
Melody Casey
Subject:
Mathematics
Material Type:
Lesson Plan
Level:
Middle School
Grade:
7
Tags:
  • GEDB
  • Global Education
    License:
    Creative Commons Attribution Non-Commercial
    Language:
    English

    Education Standards

    GEDB Poverty: Markups and the Effect on Poverty (Lesson 3 of 6)

    GEDB Poverty: Markups and the Effect on Poverty (Lesson 3 of 6)

    Overview

    Students will develop an understanding of the term "Mark up" and the difference between the markup and retail price of an item. Students will be able to use a proportional relationship in calculating the mark up and discount for an item. The will develop an understanding of how manufacturers and retail stores make a profit on items sold. This lesson was developed by Elizabeth Hicks as part of their completion of the North Carolina Global Educator Digital Badge program. This lesson plan has been vetted at the local and state level for standards alignment, Global Education focus, and content accuracy.

    Lesson Plan

    Description

    Students will develop an understanding of the term "Mark up" and the difference between the markup and retail price of an item. Students will be able to use a proportional relationship in calculating the mark up and discount for an item. The will develop an understanding of how manufacturers and retail stores make a profit on items sold.


    Content

    Learning Targets and Criteria for Success

    • Students will develop an understanding between the cost of an item and the retail price of the item.
    • Students will develop an understanding of what a markup and discount are and how each are calculated.
    • Students will be able to see the markup of an item is different across the United States.  They will understand the connection between retail price, the cost of living, and poverty.

    Learning Tasks and Practice

    Warm up:

    Students will be asked the following question: 

    1.    What is the average price of a pair of athletic shoes in NC?

    2.    What does it cost to make those athletic shoes?

    3.    What is the difference between the cost to make the shoes and the price you pay for them?

    (*To get buy in from your students, a pair of popular athletic shoes at that time should be chosen to use in this warm up.)

     

    Lesson Procedure:

    • This lesson centers around the understanding of what a Markup is and how to calculate it.  Start with the Warm up.  Students can look at the price they pay for an item (the Retail Price) and the cost to make the item (Wholesale Price).  They can then see the difference is the markup.  Students will pick a pair of their favorite sneakers.  They will then be asked to use the “HighSnobriety- How Much Does it Really Cost to Make Your Favorite Sneakers” article on-line to research the markup of athletic shoes (see footnotes).
    •  In completing the research, students should work with a partner to calculate the percent markup on 5 items when given the wholesale price and the retail price.  They are to use proportions in calculating this percentage.
    • The students will then use the same proportional framework to calculate the markup amount given the wholesale price of items. 
    • This lesson about markup should be tied to the previous days’ lessons regarding poverty levels, the economy and markup amounts.  Through the class discussion regarding the markup amount on athletic shoes, it should be explained how that amount is affected by the demand of the item.  If people purchase the item and the demand for the item increases, the price increases, which means the markup amount increases. 
    • During the discussion of markups, ask the following questions:

    1.    Do you think there is a markup on food?  For example, milk?

    The average markup is 15%.  Give the students a list of 10 basic grocery items and have them calculate the markup given the cost and a percent markup; i.e.15%.  The 10 items will be listed on the board.  Volunteers will add information to the board for each item – whole sale price, markup amount, retail price.

    2.    How does the markup on food items affect a specific population? 

    Have the students work with a partner for 10-12 minutes to research and formulate their response.  Students will share with the group their ideas on how markups affect a population.  Have the students to think back to the first lesson where poverty levels were discussed prior to beginning the research and investigating. 

    After the discussion, students will be given an assignment to complete individually about markups.  An example of the worksheet used in my classroom is attached.  This worksheet will allow students the ability to practice calculating the markup amount and determining the retail price for each item.

     

    Closing:

    The day’s lesson will be verbally summarized and students will be given an opportunity to ask questions while working on the assignment.  Leave the students with the following quotes on the board to think about…

      "Poverty is the worst form of violence." (see footnotes)
      — Mahatma Gandhi, Indian political and spiritual leader 

    “Poverty is the parent of revolution and crime." (see footnoes)
      — Aristotle

     

    Collecting and Documenting Evidence of Learning

    Students will work with a partner to calculate and list the percent markup on 5 items. Students will complete an assignment for homework on determining the markup and retail price of an item.


    Footnotes

    [i]Sawyer, Jonathan. "Find Out How Much It Costs to Make Your Favorite Sneaker."Highsnobiety. Highsnobiety, 29 May 2016. Web. 14 Nov. 2016.

    [ii]  "Famous Quotes About Poverty." Christian Child Sponsorship - Compassion - Child Charity Organization. Compassion International, 2017. Web. 15 Nov. 2016.

    [iii]"Quotes About Poverty (1230 Quotes)." (1230 Quotes). Goodreads Inc, 2017. Web. 15 Nov. 2016.