Percent Application vocabulary

Front

What is a markup?

Back

A markup is the amount added to the price of an item so the business can make a profit.

Front

What does retail cost refer to?

Back

Retail cost is what a business charges for an item.

Front

What is sales tax?

Back

Sales tax is an additional amount added to the price of goods or services.

Front

What does a sale mean in terms of pricing?

Back

A sale means a reduction in price, or an amount subtracted from the original price.

Front

What is a tip?

Back

A tip is an extra amount added to the total, typically paid to a server for service.

Front

What is the purpose of a commission?

Back

A commission is a fee paid to an agent or employee for facilitating a sale, often calculated as a percentage of the sale.

Front

How do you calculate the total cost including sales tax?

Back

Total cost = Original price + (Original price x Sales tax rate).

Front

What is the difference between gross profit and net profit?

Back

Gross profit is the revenue from sales minus the cost of goods sold, while net profit is gross profit minus all other expenses.

Front

What does it mean to discount an item?

Back

To discount an item means to reduce its selling price.

Front

What is the formula for calculating a percentage?

Back

Percentage = (Part/Whole) x 100.