Tax, Tip, Discount, Commission & Mark Up

Front

What is the formula to calculate the selling price after a markup?

Back

Selling Price = Cost Price + (Markup Percentage × Cost Price)

Front

If an item costs $200 and is marked up by 25%, what is the new price?

Back

New Price = $200 + (0.25 × $200) = $250

Front

What is sales tax and how is it calculated?

Back

Sales tax is a percentage of the sale price added to the cost of an item. It is calculated as: Sales Tax = Sale Price × Sales Tax Rate.

Front

If a product is priced at $100 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $100 + (0.08 × $100) = $108.

Front

What does it mean to apply a discount to a price?

Back

Applying a discount means reducing the original price by a certain percentage or amount.

Front

If an item originally costs $80 and has a 20% discount, what is the sale price?

Back

Sale Price = $80 - (0.20 × $80) = $64.

Front

Define commission in a sales context.

Back

Commission is a fee paid to an employee or agent for their services, usually calculated as a percentage of the sales they generate.

Front

If a salesperson earns a 10% commission on a $500 sale, how much do they earn?

Back

Commission Earned = 0.10 × $500 = $50.

Front

What is the difference between markup and margin?

Back

Markup is the amount added to the cost price to determine the selling price, while margin is the difference between the selling price and the cost price, expressed as a percentage of the selling price.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.