Reteach - Tax, Tip, Discount, Commission and Markup

Front

What is a commission?

Back

A commission is a fee paid to an agent or employee for their services, typically calculated as a percentage of the sales they generate.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (percentage).

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 sale price after a discount?

Back

Sale Price = Original Price - Discount Amount.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service.

Front

How do you calculate the discount amount?

Back

Discount Amount = Original Price x Discount Rate (percentage).

Front

What is the formula for finding the final price after tax?

Back

Final Price = Original Price + (Original Price x Tax Rate).

Front

If a product costs $50 and has a 20% markup, what is the selling price?

Back

Selling Price = Cost + (Cost x Markup Rate) = $50 + ($50 x 0.20) = $60.

Front

What is the difference between tax and tip?

Back

Tax is a mandatory financial charge imposed by the government, while a tip is a voluntary payment made for service.

Front

How do you find the total earnings of a salesperson with a base salary and commission?

Back

Total Earnings = Base Salary + Commission.