Sales Tax, Tips, and Markups (7th)

Front

What is sales tax?

Back

Sales tax is a percentage of the purchase price that is added to the total cost of goods or services.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (as a decimal) and then add that amount to the original price.

Front

If an item costs $50 and the sales tax is 5%, how much is the sales tax?

Back

$2.50

Front

What is the final price of an item that costs $50 with a 5% sales tax?

Back

$52.50

Front

What does 'tip' mean in a service context?

Back

A tip is a small amount of money given to someone for their service, usually added to 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 restaurant bill is $40 and you want to leave a 15% tip, how much is the tip?

Back

$6.00

Front

What is a markup?

Back

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

Front

How do you calculate the selling price with a markup?

Back

To calculate the selling price, add the markup amount to the cost price.

Front

If a shirt costs $20 and has a 25% markup, what is the selling price?

Back

$25.00