Sales Tax, Tip, Markup, Discount

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost at the time of purchase.

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) and then add that amount to the original price.

Front

What is a discount?

Back

A discount is a reduction in the price of a product, usually expressed as a percentage.

Front

How do you calculate the sale price after a discount?

Back

To find the sale price, subtract the discount amount from the original price.

Front

What is markup?

Back

Markup is the amount added to the cost price of a product to determine its selling price.

Front

How do you calculate markup?

Back

To calculate markup, subtract the cost price from the selling price and then divide by the cost price.

Front

What does it mean to subtract a discount from a price?

Back

Subtracting a discount means reducing the original price by the amount of the discount.

Front

If an item costs $100 and has a 20% discount, what is the sale price?

Back

The sale price is $80.

Front

If a shirt costs $50 and has a 10% sales tax, what is the final price?

Back

The final price is $55.

Front

What is the formula for calculating the final price including sales tax?

Back

Final Price = Original Price + (Original Price x Sales Tax Rate)