Tax, Tip, Commission, Discount, Markup, & Markdown Review

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What is sales tax?

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

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How do you calculate sales tax?

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To calculate sales tax, multiply the price of the item by the sales tax rate (as a decimal). For example, for an item costing $100 with a sales tax of 8%, the tax is $100 x 0.08 = $8.

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What is a tip?

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A tip is a small amount of money given to someone for their service, typically 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 (as a decimal). For example, for a $50 bill with a 15% tip, the tip is $50 x 0.15 = $7.50.

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What is a discount?

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A discount is a reduction in the price of an item, often expressed as a percentage of the original price.

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How do you calculate the amount saved with a discount?

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To calculate the amount saved, multiply the original price by the discount percentage (as a decimal). For example, a 20% discount on a $50 item saves $50 x 0.20 = $10.

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What is a markdown?

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A markdown is a permanent reduction in the selling price of a product.

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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.

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How do you calculate the sale price after a discount?

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To find the sale price, subtract the discount amount from the original price. For example, if an item costs $100 and has a $20 discount, the sale price is $100 - $20 = $80.

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What is commission?

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