2.4 Tax, Tip, Commission

Front

What is the formula to calculate tax on a purchase?

Back

Tax = Purchase Price × Tax Rate

Front

If a product costs $100 and the tax rate is 5%, how much tax do you pay?

Back

$5

Front

What is a commission in sales?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of the sales made.

Front

How do you calculate commission earned from sales?

Back

Commission Earned = Total Sales × Commission Rate

Front

If a salesperson earns a 10% commission on $1,000 in sales, how much do they earn?

Back

$100

Front

What is a tip?

Back

A tip is a sum of money given to someone for their services, typically in the hospitality industry.

Front

How do you calculate a tip based on a restaurant bill?

Back

Tip = Bill Amount × Tip Percentage

Front

If your restaurant bill is $50 and you want to leave a 20% tip, how much do you leave?

Back

$10

Front

What is the difference between gross income and net income in the context of commission-based earnings?

Back

Gross income is the total earnings before any deductions, while net income is the amount remaining after deductions such as taxes and expenses.

Front

If a real estate agent earns a base salary plus commission, how do you calculate their total earnings?

Back

Total Earnings = Base Salary + (Total Sales × Commission Rate)