Mark ups, Tax, and Tip

Front

What is a markup?

Back

A markup is the amount added to the cost price of a product to determine its selling price.

Front

How do you calculate the selling price with a markup?

Back

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

Front

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

Back

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

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price added to the cost of goods or services.

Front

How do you calculate the total cost with sales tax?

Back

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

Front

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

Back

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

Front

What is a tip?

Back

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

Front

How do you calculate a tip?

Back

Tip = Total Bill × Tip Percentage

Front

If a restaurant bill is $80 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $80 × 0.15 = $12.

Front

What is the difference between markup and sales tax?

Back

Markup is added by the seller to determine selling price, while sales tax is added by the government to the sale price.