Sales tax, Tips, and Markup

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the cost of goods and services, collected by the seller and paid to the government.

Front

How do you calculate the amount of sales tax on a purchase?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal).

Front

What is a tip, and how is it typically calculated?

Back

A tip is a gratuity given to service workers, typically calculated as a percentage of the total bill.

Front

How do you calculate a tip based on a percentage?

Back

To calculate a tip, multiply the total bill amount by the tip percentage (as a decimal).

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

Front

How do you calculate the final price after applying a discount?

Back

To calculate the final price after a discount, subtract the discount amount from the original price.

Front

What is the formula to find the final cost including sales tax?

Back

Final cost = Purchase price + (Purchase price x Sales tax rate).

Front

Convert 3.5% to a decimal.

Back

3.5% as a decimal is 0.035.

Front

If an item costs $199.95 and the sales tax is 9%, how do you find the sales tax amount?

Back

Sales tax amount = Item price x Sales tax rate = $199.95 x 0.09 = $18.00.

Front

What is the total cost of an item after applying a discount and sales tax?

Back

Total cost = (Original price - Discount) + Sales tax on discounted price.