Tax, Tip, Mark up Practice

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product that is added to the total cost at the time of purchase.

Front

How do you calculate the total cost with sales tax?

Back

To calculate the total cost with sales tax, multiply the price by the sales tax rate, then add that amount to the original price.

Front

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

Back

Total cost = $50 + ($50 * 0.08) = $54.

Front

What does it mean to 'add' sales tax to a price?

Back

Adding sales tax means increasing the original price by a certain percentage to find the final amount paid.

Front

What is the formula for calculating sales tax?

Back

Sales Tax = Price x Sales Tax Rate.

Front

If a shirt costs $20 and the sales tax is 5%, how much is the sales tax?

Back

Sales Tax = $20 x 0.05 = $1.00.

Front

What is the final price of an item that costs $40 with a 10% sales tax?

Back

Final Price = $40 + ($40 * 0.10) = $44.

Front

What is a markup?

Back

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

Front

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

Back

Selling Price = $30 + ($30 * 0.20) = $36.

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.