Sales Tax Tip Discount 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 total cost with sales tax?

Back

Total Cost = Price + (Price × Sales Tax Rate). For example, for a $6.15 item with a 7% tax: Total Cost = $6.15 + ($6.15 × 0.07) = $6.58.

Front

What does 'discount' mean?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price × Discount Rate). For example, for a $10 shirt with a 25% discount: Sale Price = $10 - ($10 × 0.25) = $7.50.

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.

Front

How do you calculate the selling price with markup?

Back

Selling Price = Cost Price + (Cost Price × Markup Rate). For example, if a store pays $1.50 for candy and marks it up by 60%, Selling Price = $1.50 + ($1.50 × 0.60) = $2.40.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, often calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

Tip = Total Bill × Tip Percentage. For example, for a $25 bill with a 20% tip: Tip = $25 × 0.20 = $5.00.

Front

What is the formula for calculating the percentage of a number?

Back

Percentage = (Part / Whole) × 100. For example, to find what percentage 5 is of 25: Percentage = (5 / 25) × 100 = 20%.

Front

What does '40% off' mean?

Back

'40% off' means that the price is reduced by 40% of the original price.