Markup/Markdown

Front

What is commission?

Back

Commission is a fee paid to an employee or agent for transacting a piece of business or performing a service, typically calculated as a percentage of the sales made.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, if the sales are $22,540 and the commission rate is 12%, the commission is $22,540 x 0.12 = $2,704.80.

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the purchase price.

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 (as a decimal) and then add that amount to the original price. For example, for a price of $6.15 with a 7% tax, the total cost is $6.15 + ($6.15 x 0.07) = $6.58.

Front

What is markup?

Back

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

Front

How do you calculate selling price with markup?

Back

To calculate the selling price with markup, multiply the cost price by the markup percentage (as a decimal) and add that to the cost price. For example, if a soda costs $1.25 with a 20% markup, the selling price is $1.25 + ($1.25 x 0.20) = $1.50.

Front

What is the formula for calculating final price with sales tax?

Back

Final Price = Original Price + (Original Price x Sales Tax Rate). For example, for a $990 TV with a 9% tax, the final price is $990 + ($990 x 0.09) = $1,079.10.

Front

What is a percentage?

Back

A percentage is a fraction expressed as a part of 100. It is used to compare proportions and is often used in calculations involving commission, tax, and markup.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 12% becomes 0.12.

Front

What is the difference between gross and net income?

Back

Gross income is the total earnings before any deductions (like taxes or commissions), while net income is the amount remaining after all deductions.