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

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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 (expressed as a decimal). For example, a 15% tip on a $26 bill is $26 x 0.15 = $3.90.

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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 the sale price after a discount?

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To find the sale price, subtract the discount amount from the original price. The discount amount is calculated by multiplying the original price by the discount percentage.

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What is a commission?

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A commission is a fee paid to someone for their services, often calculated as a percentage of the total sales they generate.

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How do you calculate a commission?

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To calculate a commission, multiply the total sales amount by the commission rate (expressed as a decimal). For example, an 11% commission on $234 is $234 x 0.11 = $25.74.

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What is markup?

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Markup is the amount added to the cost price of a product to determine its selling price, usually expressed as a percentage of the cost price.

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How do you calculate the retail price using markup?

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To calculate the retail price, multiply the cost price by the markup percentage (expressed as a decimal) and add it to the cost price. For example, a 75% markup on a $32 product is $32 + ($32 x 0.75) = $56.

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What is a markdown?

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A markdown is a reduction in the original selling price of a product, often used to encourage sales.

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How do you calculate the new price after a markdown?

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To find the new price after a markdown, subtract the markdown amount from the original price. The markdown amount is calculated by multiplying the original price by the markdown percentage.