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. It is usually expressed as a percentage of the cost price.

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 7% tax rate, the tax is $100 x 0.07 = $7.

Front

What is the formula to find the total cost including tax?

Back

Total Cost = Price + (Price x Tax Rate).

Front

If an item costs $50 and has a 10% markup, what is the selling price?

Back

Selling Price = Cost + (Cost x Markup Rate) = $50 + ($50 x 0.10) = $55.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their services, typically in the hospitality industry, as a way to show appreciation.

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 $20 bill with a 15% tip, the tip is $20 x 0.15 = $3.

Front

What is the total cost if the price is $25 and the sales tax is 8%?

Back

Total Cost = $25 + ($25 x 0.08) = $27.

Front

If a restaurant bill is $45 and you want to leave a 20% tip, how much is the tip?

Back

Tip = $45 x 0.20 = $9.

Front

What is the selling price of an item that costs $40 with a 25% markup?

Back

Selling Price = $40 + ($40 x 0.25) = $50.

Front

How do you find the total cost after adding tax?

Back

Add the sales tax to the original price: Total Cost = Price + Sales Tax.