Tips & Sales Tax

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually 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 cost of the service by the tip percentage (expressed as a decimal). For example, for a 20% tip on a $50 meal: 50 x 0.20 = $10.

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 7% sales tax: 100 x 0.07 = $7.

Front

What is the total cost of a meal including tip?

Back

The total cost of a meal including tip is the sum of the meal cost and the tip amount.

Front

If a meal costs $40.84 and you leave a 20% tip, what is the total cost?

Back

$49.01

Front

If an item costs $649.00 and there is a 7% sales tax, what is the total cost?

Back

$694.43

Front

What is the formula for calculating total cost with tip?

Back

Total Cost = Meal Cost + (Meal Cost x Tip Percentage)