Sales Tax, Tips, and Markup

Front

What is sales tax?

Back

A sales tax is a percentage added to the price of goods and services, collected by the seller and paid to the government.

Front

How do you calculate the final price including sales tax?

Back

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

Front

If a T.V costs $990 and has a 7% sales tax, what is the final price?

Back

$1,059.30

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 the selling price with markup?

Back

Selling Price = Cost Price + (Cost Price × Markup Rate)

Front

If a bottle of soda costs the store $1.25 and has a 20% markup, what is the selling price?

Back

$1.50

Front

What is the formula for calculating percent of change?

Back

Percent of Change = ((New Value - Original Value) / Original Value) × 100%.

Front

If John sold a golf club for $40 that he bought for $75, what is the percent of change?

Back

46.6% decrease.

Front

What is a commission rate?

Back

A commission rate is a percentage of sales that is paid to an employee as compensation.

Front

If Sharon sold $37,000 worth of items and earns a 17% commission, how much does she earn?

Back

$6,290.