Sales Tax, Tips, Markups, & Discounts

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods and services that is collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

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

Front

If a product costs $50 and the sales tax is 8%, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.08) = $54.

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 based on a meal cost?

Back

Tip = Meal Cost x Tip Percentage.

Front

If a meal costs $30 and you want to leave a 15% tip, how much is the tip?

Back

Tip = $30 x 0.15 = $4.50.

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Rate).

Front

If a shirt costs $40 and has a 20% discount, what is the sale price?

Back

Sale Price = $40 - ($40 x 0.20) = $32.

Front

What is a markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.