Flashcard: Discount, Sales Tax, Tip, and Markup

Front

What is markup?

Back

Markup is the amount added to the cost price of a product to determine its selling price, usually expressed as a percentage of the cost price.

Front

How do you calculate the selling price using markup?

Back

Selling Price = Cost Price + (Markup Percentage × Cost Price)

Front

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

Back

Selling Price = $50 + (0.20 × $50) = $60.

Front

What is a discount?

Back

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

Front

How do you calculate the final price after a discount?

Back

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

Front

If a dress costs $40 and is on sale for 25% off, what is the final price?

Back

Final Price = $40 - (0.25 × $40) = $30.

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually expressed as a percentage of the selling price.

Front

How do you calculate the total cost including sales tax?

Back

Total Cost = Selling Price + (Sales Tax Percentage × Selling Price)

Front

If a video game costs $60 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $60 + (0.08 × $60) = $64.80.

Front

What is a tip?

Back

A tip is a small amount of money given to service workers as a token of appreciation for their service, usually expressed as a percentage of the total bill.