Tax, Tip, Markup

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 (expressed as a decimal). For example, for an 18% tip on a $50 bill: $50 x 0.18 = $9.

Front

What is sales tax?

Back

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 sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (expressed as a decimal). For example, for a $100 item with a 6% sales tax: $100 x 0.06 = $6.

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.

Front

How do you calculate the selling price with markup?

Back

To calculate the selling price, multiply the cost price by the markup percentage (expressed as a decimal) and add it to the cost price. For example, if an item costs $10 and has a 20% markup: Selling Price = $10 + ($10 x 0.20) = $12.

Front

What is the final cost of an item?

Back

The final cost of an item is the total amount paid after adding sales tax to the selling price.

Front

How do you find the final cost including sales tax?

Back

To find the final cost, add the sales tax to the selling price. For example, if the selling price is $50 and the sales tax is 6%: Final Cost = $50 + ($50 x 0.06) = $53.

Front

What is a gratuity?

Back

A gratuity is another term for a tip, often given for good service in restaurants or hospitality.

Front

How do you calculate the total cost of a meal including tax and tip?

Back

First, calculate the sales tax on the meal, then add it to the meal cost. Finally, calculate the tip based on the new total and add it to find the total cost.