Discount, Tax, Tip, Markup, & Commission

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What is a tip?

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A tip is a small amount of money given to someone for their service, usually in the hospitality industry, as a way to show appreciation.

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How do you calculate a tip?

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To calculate a tip, multiply the total bill by the tip percentage (e.g., for an 18% tip on a $67.45 bill, calculate 67.45 * 0.18 = $12.14).

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What is a discount?

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A discount is a reduction in the price of a product or service, often expressed as a percentage.

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How do you calculate savings from a discount?

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To calculate savings from a discount, multiply the original price by the discount percentage (e.g., for a 15% discount on a $280 book, calculate 280 * 0.15 = $42).

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What is tax?

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Tax is a mandatory financial charge imposed by a government on individuals or businesses, usually calculated as a percentage of income or sales.

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How do you calculate tax on a purchase?

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To calculate tax, multiply the purchase price by the tax rate (e.g., for a $100 item with a 5% tax, calculate 100 * 0.05 = $5).

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What is markup?

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Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

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How do you calculate the selling price with markup?

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To calculate the selling price with markup, add the markup amount to the cost price (e.g., if an item costs $50 and has a 20% markup, calculate 50 + (50 * 0.20) = $60).

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What is commission?

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

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How do you calculate commission?

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To calculate commission, multiply the total sales by the commission rate (e.g., for $1,000 in sales with a 10% commission, calculate 1000 * 0.10 = $100).