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Grocer

Real-Life Activities

Real-Life Math

When you think of using math in a grocery store, there's no doubt that money immediately comes to mind.

"Computers take care of a lot, but not everything," says grocer E.J. Geyer. "In the office, you have to balance the tills and safe every night."

There is a standard formula for calculating profit:

Mark-up = retail - cost
Retail = mark-up + cost
Cost = retail - mark-up

cost = what the grocer pays for an item
mark-up = the amount added to the cost of the item so the grocer can make a profit
retail = price the customer pays

You are the proud owner of Lulu's, a neighborhood grocery store. Here are a few of the items that you carry in your store, along with the cost and retail prices.

ItemCostRetail
Chocolate chip cookies0.752.25
Frozen pizza2.004.50
Prepackaged salad1.102
Orange juice1.502.99
Cinnamon rolls0.751.69

Last week, you sold 15 packages of chocolate chip cookies, 26 frozen pizzas, 18 salads, 14 cartons of orange juice and 19 packages of cinnamon rolls. How much profit did you make on these items?

Remember: retail - cost = mark-up

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.