for achieved, there must be evidence of at least 3 of; using percentage discounts finding the...

For Achieved, there must be evidence of at least 3 of;• Using Percentage discounts• Finding the Percentage of a number• Increasing or Decreasing a number by a fraction• Finding the fraction of a number• Increasing or Decreasing by a decimal

For Merit, there must be evidence of at least 2 of;• Removing GST• Converting from NZ$ to overseas currency and vice-

versa• Ratios

For Excellence, there must be evidence of;• Valid recommendation with justification• Outline of any assumptions made• 1 minor error allowed in calculations

Simon’s Bike Purchases

Overall Aim of Assessment

Simon has been presented with 4 different options of

purchasing his bike and accessories. Simon must work out

the price for each option, and then choose an option and

provide logical reasons for doing so.

Simon’s Bike PurchasesOption 1

Simon has 4 items to purchase, and been provided 5 different discounts.

Strategy:To find the maximum discount possible in order to find the lowest price for the 4 items. To do this match the largest discount with the largest priced item.


Step 1:Convert all the discounts to %’s so easily compared.

• 20% off discount = 20%• Pay 87% of item discount = 13%• 2/9 off one item discount = 22.2%• Reduce by 0.16 discount = 16%• Pay 7/8 of the item discount = 12.5%


Step 2:Match largest discounts with largest prices of items

• Road Bike of $899 with discount of 22.2%• GPS Tracker of $349 with discount of 20%• Bike Shoes of $225 with discount of 16%• Helmet of $79 with discount of 13%


Step 3:Calculate the relevant discounts (using original number format)

• Road Bike of $899 with discount of 22.2%

This was using the discount option 2/9 OFF any one item

Price left after discount off



• GPS Tracker of $349 with discount of 20%

This was using the discount option 20% OFF any one item




• Bike Shoes of $225 with discount of 16%

This was using the discount option Reduce by 0.16 of the price




• Helmet of $79 with discount of 13%

This was using the discount option Pay 87% of any one item



Step 4:Add up the final costs of the items, and get a final cost price.

Road Bike $699.22GPS Tracker $279.20Bike Shoes $189.00Helmet $ 68.73

TOTAL PRICE $1236.15


Step 5:Summarise;

The price of the 4 items would be $1236.15. This is the lowest price that can be obtained as I have maximized the discount matching the largest price items with the largest discount on offer.

Simon would get these items when he purchased them, and have them available for use immediately.


Simon can purchase the 4 items from an online store in Australia. There is exchange rate calculations, and Duty to consider.

Strategy:Calculate the total cost of the goods in $AUS (including shipping costs) and convert to $NZ. Then allow for the Duty Fee (if necessary) to find our total price.


Step 1:Add the 4 items together with the shipping cost.

Road Bike $489GPS Tracker $205Bike Shoes $125Helmet $ 39Shipping $ 79

TOTAL PRICE AUS $937


Step 2:Convert the total Australian price to $NZ, using the exchange rate of NZ$1 = AUS 84c.

(I have divided by 0.84 as I will be getting more $NZ than I have $AUS )

NOTE: there are other alternative options of interpreting this duty


Step 3:Work out NZ Duty Fee

$1115.48 is $715.48 more than the $400, therefore I have to pay 12% on this additional amount.


Step 4:Total Cost for this option

= $1115.48 + $85.86 = $1201.34


Step 5:Summarise;

The price of the 4 items imported from Australia would cost $1115.48, and duty fees need to be added of $85.86. Therefore the total cost would be $1201.34.

Simon would have to wait for these items to be shipped (and hopefully correct and undamaged). Shipping time can vary from days to weeks.


Simon can wait 2 weeks, and purchase on a GST free day.

Strategy:Calculate the total cost of the goods and then remove the GST amount.


Step 1:Add the 4 items together (from the initial information)

Road Bike $899GPS Tracker $349Bike Shoes $225Helmet $ 79

TOTAL PRICE $1552


Step 2:Calculate the GST exclusive price for the total amount.

An item with GST included (15%) is effectively 115% in total

To find 100% (with GST taken off) 1. Calculate 1% (by dividing by 115)2. Work out 100% (multiply by 100)

Same as dividing by 1.15


Step 3:Summarise;

The price of the 4 items with GST removed is $1349.57.

Simon would have to wait for two weeks for this sale, therefore wouldn’t have the items until then.


Simon can wait 4 weeks, and combine finances with his parents towards the purchases. He also gets to purchase a bike rack as well.

Strategy:Calculate the total cost of the goods including the bike rack, then split the amount according to the ratio.


Step 1:Add the 5 items together (from the initial information)

Road Bike $899GPS Tracker $349Bike Shoes $225Helmet $ 79Bike Rack $349

TOTAL PRICE $1901


Step 2:Split the total price using the ratio of 4:3 given. (With $4 Simon : $3 Parents)

Add the parts in the ratio (4+3) = 7.

Split the total price into 7 equal parts Price for Simon = 4 parts 4 x $271.57 = $1086.29 (2dp)Price for Parents = 3 parts 3 x $271.57 = $814.71 (2dp)


Step 3:Summarise;

The amount that Simon spends is $1086.29.

Simon would have to wait 4 weeks until he could purchase these items.


OVERALL

Option 1 Simons cost is $1236.15Option 2 Simons cost is $1201.34Option 3 Simons cost is $1349.57Option 4 Simons cost is $1086.29


RECOMMENDATIONYou need to consider things like:

• Price• Time that Simon gets his bikes and gear• Time of the upcoming bike race• Overseas purchases – accuracy of order, warranties• Does exchange rate vary from decision to buy to purchase

time• Could Simon of purchased bike rack and used last

discount option in Option 1

for achieved, there must be evidence of at least 3 of; using percentage discounts finding the...

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