Mark-ups, Tax, and Tips

Front

What is a markup?

Back

A markup is the amount added to the cost price of goods to cover overhead and profit.

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.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal).

Front

If an item costs $50 and the sales tax is 5%, what is the total cost?

Back

Total cost = $50 + ($50 * 0.05) = $52.50.

Front

What is a tip?

Back

A tip is a sum of money given to someone for their services, typically 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 (as a decimal).

Front

If a dinner costs $40 and you leave a 15% tip, how much is the tip?

Back

Tip = $40 * 0.15 = $6.

Front

What is the total cost if the dinner is $40 and a 15% tip is added?

Back

Total cost = $40 + $6 = $46.

Front

What does it mean to add sales tax to a price?

Back

Adding sales tax means increasing the original price by the amount of tax calculated.

Front

If a TV costs $899 and the tax rate is 6.5%, how much tax do you pay?

Back

Tax = $899 * 0.065 = $58.43.