Tax/Tip/Discount/MarkUp/Commission Flashcard

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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, 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 (e.g., for an 18% tip on a $75 bill, calculate 0.18 x 75 = $13.50).

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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.

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How do you calculate a discount?

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To calculate a discount, multiply the original price by the discount percentage and subtract that amount from the original price.

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What is sales tax?

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Sales tax is a percentage added to the price of goods and services, 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 original price by the sales tax rate (e.g., for a $77 item with a 9.8% tax, calculate 0.098 x 77 = $7.55).

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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.

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How do you calculate markup?

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To calculate markup, add the markup percentage to the cost price (e.g., if an item costs $50 and has a 20% markup, the selling price is $50 + (0.20 x 50) = $60).

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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?

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To calculate commission, multiply the total sales by the commission rate (e.g., for $1,000 in sales with a 5% commission, calculate 0.05 x 1000 = $50).