Sales tax, tip, discount, markup

Front

What is sales tax?

Back

A sales tax is a percentage of the sale price of goods or services that is added to the purchase price and collected by the seller.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for a $100 item with a 6.5% tax rate: $100 x 0.065 = $6.50.

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

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 20% tip: $50 x 0.20 = $10.

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

To calculate the sale price, subtract the discount amount from the original price. For example, for a $100 item with a 25% discount: $100 - ($100 x 0.25) = $75.

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.

Front

How do you calculate markup?

Back

To calculate markup, multiply the cost price by the markup percentage (as a decimal) and add it to the cost price. For example, for a $50 item with a 40% markup: $50 + ($50 x 0.40) = $70.

Front

If a shirt costs $20 and is marked up by 30%, what is the selling price?

Back

Selling price = $20 + ($20 x 0.30) = $26.

Front

What does 'final cost' mean?

Back

Final cost is the total amount paid after all discounts, taxes, and additional fees have been applied.