Tip, Tax, Markup

Front

What is the total cost of an item after tax?

Back

To find the total cost after tax, multiply the original price by the tax rate and add it to the original price. Formula: Total Cost = Original Price + (Original Price * Tax Rate).

Front

What does gratuity mean in relation to a bill?

Back

Gratuity, or tip, is an amount added to the price of a service, typically a percentage of the total bill.

Front

How do you convert a fraction to a percent?

Back

Front

How do you calculate a tip based on a meal price?

Back

To calculate a tip, multiply the meal price by the tip percentage. Example: For a $40.84 meal with a 20% tip, Tip = $40.84 * 0.20 = $8.17.

Front

What is markup in pricing?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit. Formula: Selling Price = Cost Price + (Cost Price * Markup Rate).

Front

If a t-shirt costs $7.50 and is marked up by 40%, what is the selling price?

Back

Selling Price = Cost Price + (Cost Price * Markup Rate) = $7.50 + ($7.50 * 0.40) = $10.50.

Front

What is the formula to calculate tax on an item?

Back

Tax = Original Price * Tax Rate. Total Cost = Original Price + Tax.

Front

What is the difference between tax and tip?

Back

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

Front

How do you find the percentage of a number?

Back

To find the percentage of a number, multiply the number by the percentage (in decimal form). Example: 20% of 50 = 50 * 0.20 = 10.

Front

What is a common tip percentage in restaurants?

Back

A common tip percentage in restaurants is 15% to 20% of the total bill.