Sales tax, Tips, and Markup

Front

What is sales tax?

Back

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

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $100 item with a 7% tax, the sales tax is $100 x 0.07 = $7.

Front

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

Back

Total Cost = Price + (Price x Sales Tax Rate).

Front

If a T.V. costs $1,299 and the sales tax is 7%, what is the total cost?

Back

Total Cost = $1,299 + ($1,299 x 0.07) = $1,389.93.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $30 bill with a 15% tip, the tip is $30 x 0.15 = $4.50.

Front

If you leave a 20% tip on a $50 bill, how much is the tip?

Back

Tip = $50 x 0.20 = $10.

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 markup?

Back

Markup = Selling Price - Cost Price.

Front

If an item costs $20 and is sold for $30, what is the markup?

Back

Markup = $30 - $20 = $10.