Tax/Tip/Discount/Mark-up

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods or services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

Total Cost = Regular Price + (Regular Price × Sales Tax Rate)

Front

What is a mark-up?

Back

A mark-up is the amount added to the cost price of goods to cover overhead and profit.

Front

How do you calculate the selling price after a mark-up?

Back

Selling Price = Cost Price + (Cost Price × Mark-up Percentage)

Front

What is a discount?

Back

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

Front

How do you calculate the final price after applying a discount?

Back

Final Price = Original Price - (Original Price × Discount Rate)

Front

What is commission?

Back

Commission is a fee paid to an employee based on the sales they generate, usually expressed as a percentage.

Front

How do you calculate commission earned?

Back

Commission Earned = Total Sales × Commission Rate

Front

What is the formula to calculate tax on an item?

Back

Tax = Price of Item × Tax Rate

Front

If an item costs $100 and the tax rate is 5%, what is the total cost?

Back

Total Cost = $100 + ($100 × 0.05) = $105