How is unit priceused to determine
total price?
The unit price is simply the cost for each
item (or unit). The term is often used to
compare the cost of the same quantity of
items that come in different sizes, or it is
used to determine total costs for services.
For example, if a person was having a
birthday party at a local restaurant for
100 guests, and each meal (unit) cost
$7.50, the total cost of the celebration
would be $7.50 100 $750.00. Add a
tip to the total (see above), and it’s easy to
see why most people celebrate at home or
only invite a few friends.
What is balancing a checkbook?
Balancing a checkbook is often a chal-
lenge. For some people, forgetting to
enter checks written against or deposits
made into the account creates the biggest balancing problems. For others, it is not
depositing enough money to cover written checks. There really is no “art” to keeping a
checkbook. It is just a matter of checks and balances—or debits and credits—and a lit-
tle bit of simple mathematics.
To keep a healthy checkbook, there are several things a person can do. For exam-
ple, keep a running balance of distributed checks in a check ledger. Whenever you
write a check, write the amount in the ledger booklet most banks give with the
checks. In the proper column, list the check number, who the check is made out to
(and any other important information), the amount in the negative (, or debit) col-
umn, and subtract the check amount from the last balance.
Along with making out checks (taking out money), keep a record of deposits
made in the checkbook register. Deposits are usually written in the positive column
(, or credit). Don’t let the money get low—if the account balance goes into nega-
tive numbers, the account does not have enough money to cover the checks. If more
money is not put into the checking account at this point, the checks will “bounce,”
or not clear with sufficient funds. (This is notgood!) Most banks charge substantial
fees to the account owner for bounced checks, not the person to whom the check is
made out.
Whenever you receive your bank statement, check to see if the balance agrees
with your checkbook. This is called “balancing the checkbook.” As you compare the 411
EVERYDAY MATH
Be careful to calculate your tips correctly using per-
centages, or you might end up with a disgruntled
waitress. Stone/Getty Images.