Sales Tax, Tips, and Markup

Front

What is Sales Tax?

Back

A sales tax is a percentage of the sale price that is added to the cost of goods and services, collected by the seller and paid to the government.

Front

How do you calculate the total bill after a tip?

Back

To calculate the total bill after a tip, multiply the original bill amount by the tip percentage (as a decimal), then add that amount to the original bill.

Front

What is a Tip?

Back

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

Front

How do you calculate a tip amount?

Back

To calculate a tip amount, multiply the total bill by the tip percentage (as a decimal).

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 the selling price with markup?

Back

To calculate the selling price with markup, multiply the cost price by the markup percentage (as a decimal) and add it to the cost price.

Front

If a shirt costs $10 and has a 30% markup, what is the selling price?

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Selling Price = Cost Price + (Cost Price x Markup Percentage) = $10 + ($10 x 0.30) = $13.00.

Front

What is the formula for calculating sales tax?

Back

Sales Tax = Sale Price x Sales Tax Rate (as a decimal).

Front

If groceries cost $35.50 and the sales tax is 4.5%, how much will you pay in total?

Back

Total Amount = Cost + Sales Tax = $35.50 + ($35.50 x 0.045) = $37.10.

Front

What is the total bill if you spend $30 and leave a 15% tip?

Back

Total Bill = Original Bill + Tip = $30 + ($30 x 0.15) = $34.50.