Discount, Tax, Tip, Markup, & Commission

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What is a discount?

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

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How do you calculate the final price after a discount?

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To calculate the final price after a discount, subtract the discount amount from the original price. Discount Amount = Original Price x Discount Rate.

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What is sales tax?

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Sales tax is a percentage of the sale price that is added to the cost of a product or service, collected by the seller and paid to the government.

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How do you calculate the total cost including sales tax?

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To calculate the total cost including sales tax, multiply the original price by the sales tax rate and add that amount to the original price. Total Cost = Original Price + (Original Price x Sales Tax Rate).

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What is a tip?

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A tip is a small amount of money given to service workers (like waiters or taxi drivers) as a reward for good service, usually calculated as a percentage of the total bill.

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How do you calculate a tip?

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To calculate a tip, multiply the total bill by the tip percentage. Tip Amount = Total Bill x Tip Percentage.

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What is markup?

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Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage of the cost price.

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How do you calculate the selling price using markup?

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To calculate the selling price using markup, add the markup amount to the cost price. Selling Price = Cost Price + (Cost Price x Markup Rate).

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What is commission?

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Commission is a fee paid to an employee or agent for their services, usually calculated as a percentage of the sales they generate.

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How do you calculate commission earned?

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To calculate commission earned, multiply the total sales amount by the commission rate. Commission Earned = Total Sales x Commission Rate.