Sales Tax Tip Discount Markup

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (expressed as a decimal). For example, for a $25 bill with a 20% tip: $25 x 0.20 = $5.

Front

What does a discounted price mean?

Back

A discounted price means the original price has been reduced.

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (expressed as a decimal) and subtract that amount from the original price.

Front

What is sales tax?

Back

Sales tax is a percentage added to the price of goods and services, collected by the seller and paid to the government.

Front

How do you calculate sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (expressed as a decimal). For example, for a $100 item with a 5% sales tax: $100 x 0.05 = $5.

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

Front

How do you calculate markup?

Back

To calculate markup, subtract the cost price from the selling price, then divide by the cost price and multiply by 100 to get a percentage.

Front

If a jacket costs $85 and is on sale for 40% off, how much do you pay?

Back

You pay $51. (Discount: $85 x 0.40 = $34; Sale Price: $85 - $34 = $51.)

Front

What is the formula for finding the sale price after a discount?

Back

Sale Price = Original Price - (Original Price x Discount Percentage).