158 chaPter 6 • PercentS and their aPPlicationS in BUSineSS
Review exeRcises
Convert the following percents to decimals.
6
Section i
complete the following chart:
Fraction Decimal Percent
43
.05375
5
3
%
1.
28%
2.
63%
3.
13.4%
4.
121%
5.
42.68%
6. 6
1
7.
.05%
8.
3
%
9.
1
25
1
%
10.
2,000%
Convert the following decimals or whole numbers to percents.
11.
.0052
.
164
5.33
12.
13.
46
14.
.
34
1
Convert the following percents to reduced fractions, mixed numbers, or whole numbers.
21.
5%
22.
75%
23.
89%
24.
230%
claSSroom activity
From the local newspaper,
have students bring to class
numbers and decimals. For example,
47.486%
rounded to tenths
would be
47.5%
.
ExamplE4
converting FractionS
to PercentS
Convert the following fractions or mixed numbers to percents.
1
SolutionStrategy
Change the fractions to decimals by dividing the numerator by the denominator; then move the
decimal point two places to the right and add a percent sign.
tryitexerciSe 4
Convert the following fractions or mixed numbers to percents.
Use the
%
key on your calculator to
For example:
50
=.88 =88
%
.
Calculator sequence:
44 ÷ 50 % =88
Note: Scientific and business calculators
require pushing the
=
button after the
Learning Tip
85461_ch06_hr_154-188.indd 158 9/24/15 10:58 PM
1
Section i • UnderStanding and converting PercentS 159
Use the pie chart “What is Your Favorite Cookie?” to find the decimal and reduced
fractionequivalent for exercises 41–45.
Type of Cookie Decimal Reduced Fraction
41. Chocolate chip
53
100
BUsiNess DecisiON: eNhANciNg The Pie
Disney Dollars
46. You have been asked to make a presentation about The Walt
Disney Company. In your research, you locate the accompanying
pie chart, which shows Disney revenue by segment expressed in
billions of dollars.
To enhance your presentation, you have decided to convert the
dollar amounts to percents and display both numbers.
a. What is the total revenue?
b. What percent (rounded to the nearest tenth percent) does
each segment contribute to the total revenue?
Media Networks Parks and Resorts
Consumer Products Studio Entertainment
What Is Your
Favorite
Cookie?
25.
38%
26.
37.5%
27.
6
2
1
2%
Convert the following fractions or mixed numbers to percents.
31.
3
32.
5
33.
12
34. 6
3
35.
125
100
4
36.
78
24
37.
3
16
38. 4
1
5
39.
35
100
40.
375
1,000
28.
450%
29.
125%
30.
.8%
The Walt Disney Company
Segment Revenue
($ billions)
Parks
and Resorts
Media
Networks
29.6 %
46.8 %
$10.7
$6.1
$16.9
85461_ch06_hr_154-188.indd 159 9/24/15 10:58 PM
166 chaPter 6 • PercentS and their aPPlicationS in BUSineSS
Review exeRcises
Solve the following for the portion. round to hundredths when necessary.
tryitexerciSe 12
Solve the following for the base. round to hundredths or the nearest cent when
necessary.
Section ii
6
ExamplE13
USing the Percentage
FormUla
all Star Sporting goods reports that
28 %
of total shoe sales are from nike products.
iflastweek’s nike sales were
$15,400
, what was the total amount of sales for the week?
SolutionStrategy
In this problem, the total amount of sales, the base, is unknown. Because
28%
has the percent sign,
it is the rate and
$15,400
is the portion. Note again, the portion is in the same terms as the base,
dollar sales; however, the unique characteristic is that the portion represents Nike sales.
tryitexerciSe 13
Solve the following for the base. round to hundredths or the nearest cent when
necessary.
a. In a machine shop,
35%
of the motor repairs are for broken shafts. If
126
motors had broken
shafts last month, how many total motors were repaired?
75%
3,420
1.
15%
of
380
is __________
2.
10.5%
of
1,400
is __________
3.
200%
of
45
is __________
5. What is the portion if the base is
450
and the rate is
19%
?
6. What is the portion if the base is
1,650
and the rate is
150%
?
7. What number is
35.2%
of
184
?
8. What number is
.8%
of
500
?
4.
5
1
of
$600
is __________
85461_ch06_hr_154-188.indd 166 9/24/15 10:59 PM
88%
Section ii • USing the Percentage FormUla to Solve BUSineSS ProBlemS 167
9. What is
84
5
% of
200
? 10. What number is
258%
of
2,500
?
Solve the following for the rate. round to the nearest tenth of a percent when necessary.
11.
40
is
%
of
125
12.
%
of
50
is
23
13.
600
is
%
of
240
14. What is the rate if the base is
288
and the portion is
50
?
15. What is the rate if the portion is
21.6
and the base is
160
?
16. What is the rate if the base is
$24,500
and the portion is
$5,512.50
?
17. What percent of
77
is
23
?
travel agent According to data from
the U.S. Bureau of Labor Statistics, overall
employment of travel agents is expected
travelers, or particular destinations.
Themedian annual wage for a travel
18. What percent of
1,600
is
1,900
?
19.
52
is what percent of
840
?
20.
$7.80
is what percent of
$58.60
?
Solve the following for the base. round to hundredths when necessary.
21.
69
is
15%
of
22.
360
is
150%
of
23.
6.45
is 18
1
of
24. What is the base if the rate is
16.8%
and the portion is
451
?
25. What is the base if the portion is
10
and the rate is 2
3
?
26. What is the base if the portion is
$4,530
and the rate is
35%
?
27.
60
is
15%
of what number?
28.
160
is
130%
of what number?
29.
$46.50
is 86
2
% of what number?
30.
is
62.5%
of what number?
Solve the following word problems for the portion, rate, or base.
31. Alicia Kirk owns
37%
of a travel agency.
a. If the total worth of the business is
$160,000
, how much is Alicia’s share?
b. Last month Alicia’s agency booked
$14,500
in airline fares on Orbit Airline. If Orbit pays
agencies a commission of
4.1%
, how much commission should the agency receive?
32. What is the sales tax rate in a state where the tax on a purchase of
$464
is
$25.52?
85461_ch06_hr_154-188.indd 167 9/24/15 10:59 PM
168 chaPter 6 • PercentS and their aPPlicationS in BUSineSS
33. A recent report on a financial website noted that for the first time in more than a decade, the
size of the average newly built American house had shrunk to
2,065
square feet, or
93%
of its
original size. What was the original size before the decline? Round to the nearest square foot.
34. According to The Miami Herald, a large retail book chain recently launched a textbook rental
program for college students. The company said books would rent for
42.5%
of their original
price. If a chemistry textbook rents for
$48
, what was the original price of the text? Round to
thenearest cent.
35. If Rob Winter, a real estate agent, earned 6
1
2%
commission on the sale of property valued at
$210,000
, how much was Rob’s commission?
36. As part of a report you are writing that compares living expenses in various cities, use the
chart “Cities with the highest average monthly utility bills” to calculate the following:
a. What percent is the Baltimore utility bill of the Las Vegas bill? Round to the nearest
whole percent.
b. What percent is the Orlando utility bill of the Dallas bill? Round to the nearest tenth of
apercent.
B
346.46
37. Thirty percent of the inventory of a Nine West shoe store is high heels. If the store has
846
pairs of high heels in stock, how many total pairs of shoes are in the inventory?
38. Municipal Auto Sales advertised a down payment of
$1,200
on a Mustang valued at
$14,700
.
What is the percent of the down payment? Round to the nearest tenth of a percent.
39. According to The Miami Herald for every dollar of tip left at South Florida restaurants,
74%
went to the server,
5%
went to the host,
6%
went to the bartender, and
15%
went to the busser.
One night a large party spent
$750
on dinner and left a
20%
tip.
a. How much tip was left?
b. Use the research percents to distribute the tip between the server, the host, the bartender,
and the busser.
40. A quality control process finds
17.2
defects for every
8,600
units of production. What percent
of the production is defective?
41. The Parker Company employs
68
part-time workers. If this represents
4%
of the total work
42. A medical insurance policy requires Ana to pay the first
$100
of her hospital expense. The
insurance company will then pay
80%
of the remaining expense. Ana is expecting a short
surgical stay in the hospital, for which she estimates the total bill to be about
$4,500
. How
muchwill Ana’s portion of the bill amount to?
Cities with the highest
average monthly utility bills1
Houston
Orlando
Las Vegas
1 – Including home phone, television, high-speed Inter
net,
electricity, and natural gas as of the third quarter.
Source: WhiteFence.com
$359.52
$310.10
Section ii • USing the Percentage FormUla to Solve BUSineSS ProBlemS 169
43. A corporation earned
$457,800
last year. If its tax rate is
1
3
3
8
%, how much tax was paid?
44. In June, the New York Yankees won
15
games and lost
9
. What percent of the games did they
win? (Hint: Use total games played as the base.)
Use the pie chart “Century mutual Fund – investments” for exercises 45 and 46.
45. What is the total amount invested in the Century Mutual Fund?
46. What percent does each investment category represent? Round your answers to the nearest tenth
of a percent.
47. Ford Motor Co. announced that it planned to sell a new police cruiser vehicle in the United
States to replace its Crown Victoria “Police Interceptor.” Ford sells about
45,000
police vehi-
cles a year, or about
75%
of all police vehicles sold in the United States. Based on this informa-
tion, what is the total number of police vehicles sold in the United States each year?
48. Elwood Smith attends a college that charges
$1,400
tuition per semester for
12
credit hours of
classes. If tuition is raised by
9%
next year:
a. How much more will he pay for two semesters of classes with the same course load?
b. If Elwood works at a car wash earning
$8
per hour and pays
15%
in taxes, how many extra
hours must he work to make up for the tuition increase? Round to the nearest whole hour.
BUsiNess DecisiON: The PARTy PlANNeR
49. You are the catering manager for the Imperial Palace Hotel. Last Saturday your staff catered a
wedding reception in the main ballroom, during which
152
chicken dinners,
133
steak dinners,
and
95
fish dinners were served. All dinners are the same price. The hotel charges “per person”
for catered events.
a. What percent of the total meals served was each type of dinner?
b. If
$13,300
was charged for all the meals, how much revenue did each type produce?
169
nuptial numbers According to the
In 1960, an American bride was
typically 20 years old and a groom was
23
. Today the average age of wedding
couples is
26
for the bride and
28
for
the groom. Approximately
75
percent
of all wedding receptions take place at
a hotel, country club, or catering facility.
© Dana Burns/Shutterstock.com
Chemicals
$3.4
Manufacturing
85461_ch06_hr_154-188.indd 169 9/24/15 10:59 PM
170 chaPter 6 • PercentS and their aPPlicationS in BUSineSS
solving other bUsiness Problems
involving Percents
In addition to the basic percentage formulas, percents are used in many other ways in busi-
ness. Measuring increases and decreases, comparing results from one year with another, and
reporting economic activity and trends are just a few of these applications.
The ability of managers to make correct decisions is fundamental to success in business.
determining rate of increase or decrease
In calculating the rate of increase or decrease of something, we use the same percentage
formula concepts as before. Rate of change means percent change; therefore, the rate is the
unknown. Once again we use the formula
R=P÷B
. Rate of change situations contain an
original amount of something, which either increases or decreases to a new amount.
In solving these problems, the original amount is always the base. The amount of change
is the portion. The unknown, which describes the percent change between the two amounts,
is the rate.
6
Section iii
6-6
c. If a
20%
price increase goes into effect next month, what will be the new price per meal?
d. When photographers, florists, DJs, bands, and other outside vendors are booked through
your office for events at the hotel, a 5
1
2
% “finder’s fee” is charged. Last year
$175,000
of
such services were booked. How much did the hotel make on this service?
e. If your boss is expecting
$11,000
in “finder’s fee” revenue next year, what amount of these
services must be booked?
StepS For Determining the rate oF inCreaSe or DeCreaSe
STEP 1. Identify the original and the new amounts and find the difference between
them.
R=P÷B
Learning Tip
Review exeRcises
Solve the following increase or decrease problems for the unknown. round decimals to
hundredths and percents to the nearest tenth.
1. If a number increases from
320
to
440
, what is the rate of increase?
Portion =Increase =440 −320 =120
Base =Original number =320
R=P
B
=120
320
=.375 =37.5%
2. If a number decreases from
88
to
55
, what is the rate of decrease?
3. What is the rate of change if the price of an item rises from
$123
to
$154
?
4. What is the rate of change if the number of employees in a company decreases from
133
to
89
?
5.
50
increased by
20% =
6.
750
increased by
60% =
7.
25
decreased by
40% =
8.
3,400
decreased by
18.2% =
9.
820
increased by
400% =
10.
$46
decreased by 10
1
2%
=
11. Over a two-month period, the number of weekly visitors to a city-sponsored art museum
dropped from
2,340
per week to
1,083
per week. What was the percent decrease?
12. Sunshine Honda sold
112
cars this month. If that is
40%
greater than last month, how many
cars were sold last month?
13. At a Sports King store,
850
tennis racquets were sold last season.
a. If racquet sales are predicted to be
30%
higher this season, how many racquets should be
ordered from the distributor?
Section iii
6
Section iii • Solving other BUSineSS ProBlemS involving PercentS 177
85461_ch06_hr_154-188.indd 177 9/24/15 10:59 PM
178 chaPter 6 • PercentS and their aPPlicationS in BUSineSS
b. If racquet sales break down into
40%
metal alloy and
60%
graphite, how many of each
type should be ordered?
P
14. At a Safeway Supermarket, the price of yellow onions dropped from
$.59
per pound to
$.45
per
pound.
a. What is the percent decrease in the price of onions?
b. Tomatoes are expected to undergo the same percent decrease in price. If they currently sell
for
$1.09
per pound, what will be the new price of tomatoes?
15. According to the American Association of Retired Persons, AARP, without healthcare reform,
the number of people in the United States without healthcare insurance would have reached
61
million in 2020. This represents a
24.5%
increase from 2010. How many people were
uninsured in 2010? Round to the nearest million.
16. Housing prices in Foster County have increased by
28.5%
over the price of houses five
yearsago.
a. If
$240,000
was the average price of a house five years ago, what is the average price of a
house today?
b. Economists predict that next year housing prices will drop by
5%
in this area. Based on
your answer from part a, what will the average price of a house be next year?
17. At Camper’s Paradise, sales have increased
15%
,
20%
, and
10%
over the past three years;
that is,
15%
three years ago,
20%
two years ago, and
10%
one year ago. If sales this year
are
$1,000,000
, how much were sales three years ago? Round each year’s sales to the nearest
dollar.
18. According to the U.S. Census Bureau, in 1950,
39.3
million families had a child under
18
athome. A recent study found that number had decreased by
9.4%
. How many families had
achildunder
18
at home according to this study? Round the number of millions to the nearest
tenth.
Supermarket revenues A milestone
was reached in 2012 when, for the
first time in history, each of the
75
 companiesin Supermarket News’
list of Top
75
Food Retailers in North
85461_ch06_hr_154-188.indd 178 9/24/15 10:59 PM
19. After a vigorous promotion campaign, Crunchy Flakes Cereal increased its market share
from
5.4%
to
8.1%
, a rise of
2.7
percentage points. What percent increase in sales does this
represent?
20. The chart “Chip Rivalry” illustrates the global market share of Intel and AMD processing chips
shipped to PC makers in the years before tablet computers became very popular. Use this chart
to answer the following questions:
a. From 2004 to 2009, Intel’s market share dropped by
percentage points. What percent
decrease in market share does this represent?
b. From 2004 to 2009, AMD’s market share increased by
4.7
percentage points. What percent
increase in market share does this represent?
21. Economic reports indicate that during a recent manufacturing slowdown, unemployment
inRiver Valley increased from
7.4%
to
9.8%
, an increase of
2.4
percentage points.
a. What percent increase does this represent? Round to the nearest tenth of a percent.
b. As manufacturing picked up, unemployment dropped from
9.8%
to
8.1%
, a decrease
of
1.7
percentage points. What percent decrease does this represent? Round to the
nearest hundredth of a percent.
BUsiNess DecisiON: cReATiNg AN ecONOmic sNAPshOT
22. You are the editor of your school newspaper. For the next edition, you are writing a story
about inflation. You have located the following chart listing various consumer purchases
and their costs in 2008 and 2014, as well as the percentage change based on the 2008 prices.
Unfortunately, portions of the chart are missing.
Fill in the blank spaces to complete the chart for your story. Round percent answers to the near-
est tenth of a percent. Round dollar amount answers to the nearest whole dollar.
Consumer Purchase 2008 2014 Percent Change
Single-Family Home
Median resale price (month of July)
$237,300
$222,900
−6.1%
Section iii • Solving other BUSineSS ProBlemS involving PercentS 179
81.6%
0
2004
2009
60%
80%
79.3%
Intel
Source: IDC
85461_ch06_hr_154-188.indd 179 9/24/15 10:59 PM