Tax/Tip/Discount/MarkUp/Commission Flashcard

Front

What is commission?

Back

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

Tags

CCSS.6.RP.A.3C

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, if the commission rate is 12% and sales are $22,540, the commission is $22,540 x 0.12 = $2,704.80.

Tags

CCSS.6.RP.A.3C

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the purchase price.

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CCSS.6.RP.A.3B

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the cost of the item by the sales tax rate (as a decimal). For example, for an item costing $77 with a 9.8% tax rate, the tax is $77 x 0.098 = $7.55.

Tags

CCSS.6.RP.A.3C

Front

What is markup?

Back

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

Tags

CCSS.6.RP.A.3C

Front

How do you calculate the selling price with markup?

Back

To calculate the selling price with markup, multiply the cost by the markup percentage (as a decimal) and add it to the cost. For example, if a soda costs $1.25 with a 20% markup, the selling price is $1.25 + ($1.25 x 0.20) = $1.50.

Tags

CCSS.6.RP.A.3C

Front

What is a discount?

Back

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

Tags

CCSS.6.RP.A.3C

Front

How do you calculate the final price after a discount?

Back

To calculate the final price after a discount, subtract the discount amount from the original price. For example, if an item costs $100 with a 20% discount, the discount is $100 x 0.20 = $20, so the final price is $100 - $20 = $80.

Tags

CCSS.6.RP.A.3C

Front

What is the difference between commission and salary?

Back

Commission is based on sales performance, while salary is a fixed regular payment regardless of sales.

Tags

CCSS.7.RP.A.3

Front

What is the formula for calculating total cost including tax?

Back

Total cost including tax = Original price + (Original price x Sales tax rate). For example, for an item costing $77 with a 9.8% tax, total cost = $77 + ($77 x 0.098) = $84.55.

Tags

CCSS.6.RP.A.3C