Sales tax, tip, discount, markup

Front

What is sales tax?

Back

Sales tax is a percentage of the sale price of goods or services that is collected by the seller and paid to the government.

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How do you calculate sales tax?

Back

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

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically in the hospitality industry, as a way to show appreciation.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a $50 bill with a 20% tip, the tip is $50 x 0.20 = $10.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

How do you calculate the sale price after a discount?

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To calculate the sale price, subtract the discount amount from the original price. For example, if an item costs $80 and has a 25% discount, the discount is $80 x 0.25 = $20, so the sale price is $80 - $20 = $60.

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 price.

Front

How do you calculate markup?

Back

To calculate markup, multiply the cost price by the markup percentage (as a decimal). For example, if an item costs $30 and has a 20% markup, the markup is $30 x 0.20 = $6, making the selling price $30 + $6 = $36.

Front

If a pair of jeans costs $19.99 and is marked up by 20%, what is the amount of markup?

Back

The amount of markup is $4.00.

Front

If a pair of shoes costs $55 and is on sale for 25% off, what is the sale price?

Back

The sale price is $41.25.