2.4 Tax, Tip, Commission

Front

What is sales tax?

Back

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

Front

How do you calculate the total cost including sales tax?

Back

To calculate the total cost including sales tax, multiply the original price by the sales tax rate (as a decimal) and add that amount to the original price.

Front

If an item costs $50 and the sales tax is 5%, what is the total cost?

Back

Total cost = $50 + ($50 * 0.05) = $52.50.

Front

What is a tip?

Back

A tip is a small amount of money given to service workers, such as waiters or hairdressers, as a way to show appreciation for their service.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal).

Front

If a restaurant bill is $40 and you want to leave a 20% tip, how much is the tip?

Back

Tip = $40 * 0.20 = $8.

Front

What is commission?

Back

Commission is a fee paid to an employee or agent based on the sales they generate, usually expressed as a percentage of the sale.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal).

Front

If a salesperson sells $1,000 worth of products with a 10% commission, how much do they earn in commission?

Back

Commission = $1,000 * 0.10 = $100.

Front

What is the formula for calculating the final price of an item including tax?

Back

Final Price = Original Price + (Original Price * Sales Tax Rate).