Page 86

INTERACTIVE CHAPTER ORGANIZER

Page 87
KEY TERMS

Base, p. 75

Percent decrease, p. 80

Percent increase, p. 80

Percents, p. 69

Portion, p. 75

Rate, p. 75

Check Figures for Extra Practice Quizzes with Page References. (Worked-out Solutions in Appendix B.)

LU 3–1a (p. 74)

1. 44.4%

2. 78.2%

3. .6%

4. 793.3%

5. .0020

6. .0780

7. .92

8. 7.658

9. 33.33%

10. 42.86%

11.

12.

13.
 14.

15.

LU 3–2a (p. 85)

1. 504

2. 560

3. 8.5%

4. 44.4%

5. 50

6. 34,285.7

7. 60%

8. 300

9. $540,000

10. 44.44%

11. 435.71%

Page 88
Critical Thinking Discussion Questions with Chapter Concept Check

1. In converting from a percent to a decimal, when will you have at least 2 leading zeros before the whole
number? Explain this concept, assuming you have 100 bills of $1.

2. Explain the steps in rounding percents. Count the number of students who are sitting in the back half of
the room as a percent of the total class. Round your answer to the nearest hundredth percent. Could you
have rounded to the nearest whole percent without changing the accuracy of the answer?

3. Define portion, rate, and base. Create an example using Walt Disney World to show when the portion
could be larger than the base. Why must the rate be greater than 100% for this to happen?

4. How do we solve for portion, rate, and base? Create an example using Apple computer sales to show
that the portion and rate do relate to the same piece of the base.

5. Explain how to calculate percent decreases or increases. Many years ago, comic books cost 10 cents a
copy. Visit a bookshop or newsstand. Select a new comic book and explain the price increase in percent
compared to the 10-cent comic. How important is the rounding process in your final answer?

6. Chapter Concept Check. Go to the Google or Facebook site and find out how many people the
company employs. Assuming a 10% increase in employment this year, calculate the total number of
new employees by the end of the year and identify the base, rate, and portion. If, in the following year,
the 10% increase in employment fell by 5%, what would the total number of current employees be?

Page 89

END-OF-CHAPTER PROBLEMS

www.mhhe.com/slater2014
Name Date

Check figures for odd-numbered problems in Appendix C.

DRILL PROBLEMS

Convert the following decimals to percents: LU 3-1(1)

3–1..78

3–2..943

3–3..7

3–4.8.00

3–5.3.561

3–6.6.006

Convert the following percents to decimals: LU 3-1(1)

3–7.8%

3–8.14%

3–9.

3–10.75.9%

3–11.119%

3–12.89%

Convert the following fractions to percents (round to the nearest tenth percent as needed): LU 3-1(1)

3–13.

3–14.

3–15.

3–16.

Convert the following percents to fractions and reduce to the lowest terms: LU 3-1(2)

3–17.4%

3–18.

3–19.

3–20.
3–21.

3–22.

Solve for the portion (round to the nearest hundredth as needed): LU 3-2(2)

3–23.7% of 150

Chapter 3 Excel

3–24.125% of 4,320

Chapter 3 Excel

3–25.25% of 410

Chapter 3 Excel

3–26.119% of 128.9

Chapter 3 Excel

3–27.17.4% of 900

Chapter 3 Excel

3–28.11.2% of 85

Chapter 3 Excel

3–29. of 919

3–30.45% of 300

3–31.18% of 90

3–32.30% of 2,000

Solve for the base (round to the nearest hundredth as needed): LU 3-2(2)

3–33.170 is 120% of

3–34.36 is .75% of

3–35.50 is .5% of

3–36.10,800 is 90% of

3–37.800 is of
 Solve for rate (round to the nearest tenth percent as needed): LU 3-2(2)

3–38. of 80 is 50

3–39. of 85 is 92

3–40. of 250 is 65

3–41.110 is of 100

3–42..09 is of 2.25

3–43.16 is of 4

Page 90

Solve the following problems. Be sure to show your work. Round to the nearest hundredth or
hundredth percent as needed: LU 3-2(2)

3–44.What is 180% of 310?

3–45.66% of 90 is what?

3–46.40% of what number is 20?

3–47.770 is 70% of what number?

3–48.4 is what percent of 90?

3–49.What percent of 150 is 60?

Complete the following table: LU 3-2(3)

Selling
    price Amount of decrease or Percent change (to nearest hundredth percent as
  Product 2013 2014 increase needed)   
3– Apple iPad $650 $500    
 50.
3– Smartphone$100 $120    
 51.

WORD PROBLEMS (First of Four Sets)

3–52. At a local Dunkin' Donuts, a survey showed that out of 1,200 customers eating lunch, 240
ordered coffee with their meal. What percent of customers ordered coffee? LU 3-2(2)

Chapter 3 Excel

3–53. What percent of customers in Problem 3–52 did not order coffee? LU 3-2(2)

Chapter 3 Excel

3–54.In January 2012, gas was selling for $3.60 a gallon. The price of a gallon of regular unleaded
dropped to $3.50 on February 11, 2012. What was the percent decrease? Round to the nearest
hundredth percent. LU 3-2(3)

3–55.Wally Chin, the owner of an ExxonMobil station, bought a used Ford pickup truck, paying $2,000
as a down payment. He still owes 80% of the selling price. What was the selling price of the truck? LU
3-2(2)
 Page 91

3–56.Maria Fay bought four Dunlop tires at a local Goodyear store. The salesperson told her that her
mileage would increase by 8%. Before this purchase, Maria was getting 24 mpg. What should her
mileage be with the new tires to the nearest hundredth? LU 3-2(2)

3–57. The Social Security Administration announced the following rates to explain what percent
of your Social Security benefits you will receive based on how old you are when you start receiving
Social Security benefits.

AgePercent of benefit
62 75
63 80
64 86.7
65 93.3
66 100

Chapter 3 Excel

Assume Shelley Kate decides to take her Social Security at age 63. What amount of Social Security
money will she receive each month, assuming she is entitled to $800 per month? LU 3-2(2)

3–58. Assume that in the year 2013, 800,000 people attended the Christmas Eve celebration at
Walt Disney World. In 2014, attendance for the Christmas Eve celebration is expected to increase by
35%. What is the total number of people expected at Walt Disney World for this event? LU 3-2(2)

Chapter 3 Excel

3–59.Pete Smith found in his attic a Woody Woodpecker watch in its original box. It had a price tag on
it for $4.50. The watch was made in 1949. Pete brought the watch to an antiques dealer and sold it for
$35. What was the percent of increase in price? Round to the nearest hundredth percent. LU 3-2(3)

3–60.Christie's Auction sold a painting for $24,500. It charges all buyers a 15% premium of the final
bid price. How much did the bidder pay Christie's? LU 3-2(2)

WORD PROBLEMS (Second of Four Sets)

3–61.Out of 9,000 college students surveyed, 540 responded that they do not eat breakfast. What
percent of the students do not eat breakfast? LU 3-2(2)

Page 92

3–62.What percent of college students in Problem 3–61 eat breakfast? LU 3-2(2)

3–63.The January/February 2012 Discover magazine article “Could Random Airplane Boarding Speed
Your Trip?” demonstrates that random boarding saved 3.5 minutes off of a typical 22.5-minute
boarding process. What percent savings is this to the nearest whole percent? LU 3-2(2)

3–64.Rainfall for January in Fiji averages 12″ according to World Travel Guide. This year it rained 5%
less. How many inches (to the nearest tenth) did it rain this year? LU 3-2(2)

3–65.Jim and Alice Lange, employees at Walmart, have put themselves on a strict budget. Their goal at
year's end is to buy a boat for $15,000 in cash. Their budget includes the following:

40% food and lodging20% entertainment10% educational

Jim earns $1,900 per month and Alice earns $2,400 per month. After 1 year, will Alice and Jim have
enough cash to buy the boat? LU 3-2(2)
 3–66.Epiq Systems reported bankruptcy filings of 2 million in 2011. Seventy percent of the filings are
Chapter 7 bankruptcies allowing individuals to avoid repaying their debts if they meet certain
requirements. Thirty percent of the filings are Chapter 13 filings, where a portion of the debt will need
to be repaid over 3 to 5 years. How many bankruptcies in 2011 were Chapter 7 and how many
bankruptcies were Chapter 13? LU 3-2(3)

3–67.The Museum of Science in Boston estimated that 64% of all visitors came from within the state.
On Saturday, 2,500 people attended the museum. How many attended the museum from out of state?
LU 3-2(2)

3–68.Staples pays George Nagovsky an annual salary of $36,000. Today, George's boss informs him
that he will receive a $4,600 raise. What percent of George's old salary is the $4,600 raise? Round to
the nearest tenth percent. LU 3-2(2)

Page 93

3–69.In 2013, a local Dairy Queen had $550,000 in sales. In 2014, Dairy Queen's sales were up 35%.
What were Dairy Queen's sales in 2014? LU 3-2(2)

3–70.Blue Valley College has 600 female students. This is 60% of the total student body. How many
students attend Blue Valley College? LU 3-2(2)

3–71.Dr. Grossman was reviewing his total accounts receivable. This month, credit customers paid
$44,000, which represented 20% of all receivables (what customers owe) due. What was Dr.
Grossman's total accounts receivable? LU 3-2(2)

3–72.Massachusetts has a 5% sales tax. Timothy bought a Toro lawn mower and paid $20 sales tax.
What was the cost of the lawn mower before the tax? LU 3-2(2)

3–73.The price of an antique doll increased from $600 to $800. What was the percent of increase?
Round to the nearest tenth percent. LU 3-2(3)

3–74.A local Barnes and Noble bookstore ordered 80 marketing books but received 60 books. What
percent of the order was missing? LU 3-2(2)

WORD PROBLEMS (Third of Four Sets)

3–75.RealtyTrac reported that the amount of foreclosures filed fell from 2.9 million properties in 2010
to 2 million properties in 2011. This equated to 1 in every 69 U.S. homes. What percent of U.S. homes
were foreclosed against (to the nearest tenth percent)? LU 3-2(2)

Page 94

3–76.Due to increased mailing costs, the new rate will cost publishers $50 million; this is 12.5% more
than they paid the previous year. How much did it cost publishers last year? Round to the nearest
hundreds. LU 3-2(2)

3–77.In 2013, Jim Goodman, an employee at Walgreens, earned $45,900, an increase of 17.5% over
the previous year. What were Jim's earnings in 2012? Round to the nearest cent. LU 3-2(2)

3–78.If the number of mortgage applications declined by 7% to 1,625,415, what had been the previous
year's number of applications? LU 3-2(2)

3–79.In 2013, the price of a business math text rose to $150. This is 8% more than the 2012 price.
What was the old selling price? Round to the nearest cent. LU 3-2(2)

3–80.Web Consultants, Inc., pays Alice Rose an annual salary of $48,000. Today, Alice's boss informs
her that she will receive a $6,400 raise. What percent of Alice's old salary is the $6,400 raise? Round to
the nearest tenth percent. LU 3-2(2)
 3–81.Earl Miller, a lawyer, charges Lee's Plumbing, his client, 25% of what he can collect for Lee from
customers whose accounts are past due. The attorney also charges, in addition to the 25%, a flat fee of
$50 per customer. This month, Earl collected $7,000 from three of Lee's past-due customers. What is
the total fee due to Earl? LU 3-2(2)

3–82.A local Petco ordered 100 dog calendars but received 60. What percent of the order was missing?
LU 3-2(2)

Page 95

3–83.Ray's Video uses MasterCard. MasterCard charges on net deposits (credit slips less returns).
Ray's made a net deposit of $4,100 for charge sales. How much did MasterCard charge Ray's? LU 3-
2(2)

3–84.In 2013, Internet Access had $800,000 in sales. In 2014, Internet Access's sales were up 45%.
What are the sales for 2014? LU 3-2(2)

WORD PROBLEMS (Fourth of Four Sets)

3–85.Chevrolet raised the base price of its Volt by $1,200 to $33,500. What was the percent increase?
Round to the nearest tenth percent. LU 3-2(3)

3–86.The sales tax rate is 8%. If Jim bought a new Buick and paid a sales tax of $1,920, what was the
cost of the Buick before the tax? LU 3-2(2)

3–87.Puthina Unge bought a new Compaq computer system on sale for $1,800. It was advertised as
30% off the regular price. What was the original price of the computer? Round to the nearest dollar. LU
3-2(2)

3–88.John O'Sullivan has just completed his first year in business. His records show that he spent the
following in advertising:

Internet $600Radio $650Yellow Pages $700Local flyers $400

What percent of John's advertising was spent on the Yellow Pages? Round to the nearest hundredth
percent. LU 3-2(2)

Page 96

3–89.Jay Miller sold his ski house at Attitash Mountain in New Hampshire for $35,000. This sale
represented a loss of 15% off the original price. What was the original price Jay paid for the ski house?
Round your answer to the nearest dollar. LU 3-2(2)

3–90.Out of 4,000 colleges surveyed, 60% reported that SAT scores were not used as a high
consideration in viewing their applications. How many schools view the SAT as important in screening
applicants? LU 3-2(2)

3–91.If refinishing your basement at a cost of $45,404 would add $18,270 to the resale value of your
home, what percent of your cost is recouped? Round to the nearest percent. LU 3-2(2)

3–92.A major airline laid off 4,000 pilots and flight attendants. If this was a 12.5% reduction in the
workforce, what was the size of the workforce after the layoffs? LU 3-2(2)

3–93.Assume 450,000 people line up on the streets to see the Macy's Thanksgiving Parade in 2012. If
attendance is expected to increase 30%, what will be the number of people lined up on the street to see
the 2013 parade? LU 3-2(2)

CHALLENGE PROBLEMS
 3–94.Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $125
to $40. To receive this special $40 price, the customer must buy a round-trip ticket. Ryan has a
nonrefundable 25% penalty fare for cancellation; it estimates that about nine-tenths of 1% will cancel
their reservations. The airline also estimates this special price will cause a passenger traffic increase
from 400 to 900. Ryan expects revenue for the year to be 55.4% higher than the previous year. Last
year, Ryan's sales were $482,000. To receive the special rate, Janice Miller bought two round-trip
tickets. On other airlines, Janice has paid $100 round trip (with no cancellation penalty). Calculate the
following: LU 3-1(1), LU 3-2(2), LU 3-2(3)

1. Percent discount Ryan is offering.

2. Percent passenger travel will increase.

3. Sales for new year.

4. Janice's loss if she cancels one round-trip flight.

5. Approximately how many more cancellations can Ryan Airlines expect (after Janice's
cancellation)?

Page 97

3–95.A local Dunkin' Donuts shop reported that its sales have increased exactly 22% per year for the
last 2 years. This year's sales were $82,500. What were Dunkin' Donuts' sales 2 years ago? Round each
year's sales to the nearest dollar. LU 3-2(2), LU 3-2(3)

SUMMARY PRACTICE TEST

Convert the following decimals to percents. (p. 70) LU 3-1(1)

1. .921

2. .4

3. 15.88

4. 8.00

Convert the following percents to decimals. (p. 72) LU 3-1(1)

5. 42%

6. 7.98%

7. 400%

8.

Convert the following fractions to percents. Round to the nearest tenth percent. (p. 73) LU 3-1(1)

9.

10.

Convert the following percents to fractions and reduce to the lowest terms as needed. (p. 73) LU 3-1(2)

11.
 12. 6.2%

Solve the following problems for portion, base, or rate:

13. An Arby's franchise has a net income before taxes of $900,000. The company's treasurer estimates that
40% of the company's net income will go to federal and state taxes. How much will the Arby's
franchise have left? (p. 76) LU 3-2(2)

14. Domino's projects a year-end net income of $699,000. The net income represents 30% of its annual
sales. What are Domino's projected annual sales? (p. 78) LU 3-2(2)

15. Target ordered 400 iPods. When Target received the order, 100 iPods were missing. What percent of
the order did Target receive? (p. 77) LU 3-2(2)

16. Matthew Song, an employee at Putnam Investments, receives an annual salary of $120,000. Today his
boss informed him that he would receive a $3,200 raise. What percent of his old salary is the $3,200
raise? Round to the nearest hundredth percent. (p. 77) LU 3-2(2)

Page 98

17. The price of a Delta airline ticket from Los Angeles to Boston increased to $440. This is a 15%
increase. What was the old fare? Round to the nearest cent. (p. 78) LU 3-2(2)

18. Scupper Grace earns a gross pay of $900 per week at Office Depot. Scupper's payroll deductions are
29%. What is Scupper's take-home pay? (p. 76) LU 3-2(2)

19. Mia Wong is reviewing the total accounts receivable of Wong's department store. Credit customers paid
$90,000 this month. This represents 60% of all receivables due. What is Mia's total accounts
receivable? (p. 78) LU 3-2(2)

Page 99

VIDEO CASE PROJECT MANAGEMENT AT SIX FLAGS, NEW JERSEY

Video Case -- Project Management at Six Flags, New Jersey

www.mhhe.com/slater2014_vc

In a constantly changing business environment, new product and service development can invigorate a
company, improve market share, and ensure desired financial performance. Six Flags, with its “Go Big! Go
Six Flags” motto, knows it must regularly add new rides and upgrade existing ones in its theme parks to
remain on top.

Located in Grand Prairie, Texas, Six Flags first opened in 1961 and grew to become the largest regional
theme park system in the world. Central to this growth was the constant development of new and record-
setting theme park rides, following a well-defined process of product development. Consider the Kingda Ka
roller coaster that opened in May 2005 at the Six Flags Great Adventure & Wild Safari in Jackson, New
Jersey. This is the largest of the Six Flags parks, and Kingda Ka is the tallest and fastest coaster in North
America.

Getting to the May 2005 ride opening required significant planning and a coordinated effort. Six Flags' new
product development process ensures both. It guides and choreographs the hundreds of tasks involved in
building a roller coaster, from preparing the foundation to erecting the steel frame to installing the hydraulic
system that allows for speeds of 128 mph to fitting out the cars.
Six Flags relies on several key documents to control and monitor all resources, including raw materials,
equipment, and the people involved in the construction of the ride. The Statement of Work (SOW) is a
written statement that describes the work to be done and includes a preliminary project schedule and
completion dates. The SOW details project milestones, key completion events, and budget parameters. The
Work Breakdown Structure (WBS) defines the hierarchy of tasks, subtasks, and work packages and is key to
managing the logistics of the project. The project Gantt chart illustrates the project schedule and helps
identify the critical path within the project. The critical path represents the longest chain of tasks in terms of
time to complete. If there is a delay in any step in the critical path, the whole project can be delayed.

The Kingda Ka ride had a 15-month project schedule of which 9 to 10 months were actual construction time.
The coaster took 16 months to complete and came in 10% over budget. Success in new product development
requires careful planning, well-defined milestones, teamwork, and flexibility to respond to unforeseen
changes. The successful Kingda Ka ride was no exception.

PROBLEM 1

As stated in the case, the original project schedule for the Kingda Ka coaster was 15 months but the project
actually took 16 months to complete. What was the percent increase over the original scheduled completion
time? Round your answer to the nearest percent.

PROBLEM 2

Review the video case to identify the timing of key steps in the construction of the Kingda Ka, including start
of conceptual planning, start of foundation construction, start of steel erection, and completion of the project.
What percent of the actual total project time had elapsed by the time foundation construction began? By the
time steel erection began? Round answers to the nearest percent.

PROBLEM 3

The project Gantt chart shown in the video indicated that 145 days were planned for site preparation, 119
days for foundations, and 133 for steel erection. What was the percentage of time needed for each of these
three steps assuming 397 days were needed in total? Round answers to the nearest percent.

PROBLEM 4

The Kindga Ka is currently the tallest steel roller coaster, at 456 feet high. The second tallest is the Top Thrill
Dragster at Cedar Point in Sandusky, Ohio, at 420 feet. How much taller is the Kingda Ka in both feet and
percentage (to the nearest tenth percent)?

PROBLEM 5

If Six Flags wanted to build a roller coaster that was 5% taller than the Kingda Ka, how tall would the coaster
need to be? Round answer to the nearest foot.

PROBLEM 6

Six Flags rates its rides as mild, moderate, or max. The Six Flags Great Adventure park where the Kingda Ka
ride is located has a total of 49 rides. Of these, 12 have a max rating, 8 have a moderate rating, and the
remainder are rated mild. Express each of the ride types as a fraction and then determine the percentage each
comprises of the total. Reduce fractions to the lowest possible terms and round percentages to the nearest
percent.

PROBLEM 7

The Kingda Ka ride covers 3,118 feet of track. The Green Lantern, a new ride at the same park, has ¾ mile of
track. Which ride is longer and by what percent? Round answer to the nearest percent.

PROBLEM 8
As the case states, the Kingda Ka ride reaches speeds of 128 mph due to its hydraulic system. The Green
Lantern ride is designed to reach speeds of 63 mph. What percent increase would be needed for the Green
Lantern ride to match the speed attained on the Kingda Ka? Round answer to the nearest tenth percent.

Class Discussion In any project, project managers must balance three key variables—time, cost, and quality.
Typically one variable is most critical in a project and should problems arise, the other two may be sacrificed
to achieve the one that is key to the project's success. Discuss how these three variables were managed in the
Kingda Ka project.

Page 100

SURF TO SAVE
Need help with money and investing?
PROBLEM 1

All-in-one and one for all

Assume you want to buy an all-in-one printer/scanner/copier/fax machine. Go to www.staples.com and

choose an all-in-one machine to meet your needs. How much does it cost? If your state charged 7% sales tax;
what would be the amount of the tax on this purchase?

Discussion Questions

1. Is the all-in-one machine less expensive than purchasing separate machines for all of these tasks?

2. When might it be a better option to buy individual machines versus an all-in-one? Why?

PROBLEM 2

What do your neighbors earn?

Go to http://www.census.gov/hhes/www/income/data/statemedian/index.html. Find the Median Household

Income by State—Single-Year Estimates for a four-person family in your state (use the U.S. average if you
are taking this course outside the United States) for the last 3 consecutive years. Find the percent increase (or
decrease) in income each year for a family of four.

Discussion Questions

1. How does the median income for your state compare to a neighboring state?

2. What accounts for the differences in median income between your state and neighboring states?

PROBLEM 3

Investment know-how

Go to http://biz.yahoo.com/r. From Research Tools go to the Historical Quotes page. Enter a ticker symbol
(search by company name if you do not know the symbol) to find the price of a particular stock last
Wednesday and on the same date 1 year ago. (Use the closing price.) What was the percent change in the
stock you chose?

Discussion Questions

1. What may have caused this change in stock price?

2. How is the current stock price a reflection of the products the company sells?
PROBLEM 4

On the move, will my money follow?

Assume your employer is relocating to another state. You can keep your current job and salary if you move.
Go to http://cgi.money.cnn.com/tools/costofliving/costofliving.html, enter your current state and city, a new
destination state and city, and your current yearly salary. Click on “Get result.” Based on the calculation, what
is the percent increase or decrease of your salary? Is this move worth your while financially?

Discussion Questions

1. Other than income, what factors would influence your decision to move to another state?

2. What factors help explain the change in income between the two locations you selected?

MOBILE APPS

PercentDiff (Shaolo LLC) Calculates percentage change or percentage for given numbers.

Percent Calculator (Paul Charwin) Calculates percentages easily.

INTERNET PROJECTS

See text website www.mhhe.com/slater2014_sse_ch03

Page 101
PERSONAL FINANCE
A KIPLINGER APPROACH
BUSINESS MATH ISSUE

The impact of technology today will result in fewer job openings in the future.

1. List the key points of the article and information to support your position.

2. Write a group defense of your position using math calculations to support your view.