Flashcard on 6-1 to 6-4

Front

What is the definition of sales tax?

Back

Sales tax is a consumption tax imposed by the government on the sale of goods and services, calculated as a percentage of the purchase price.

Front

True or False? Some states allow local governments to impose additional sales taxes.

Back

True

Front

What is the formula to calculate the total purchase price including sales tax?

Back

Total Purchase Price = Original Price + (Original Price × Sales Tax Rate)

Front

True or False? The total purchase price is found by multiplying the total price by the sales tax rate.

Back

False

Front

What is the unit price?

Back

The unit price is the cost per single unit of a product, calculated by dividing the total price by the number of units.

Front

True or False? When calculating unit price, you should round to the nearest thousandth.

Back

True

Front

If a car costs $6000 and tires cost $100 each, how do you calculate the total cost before tax?

Back

Total Cost = Cost of Car + (Number of Tires × Cost per Tire) = $6000 + (4 × $100) = $6400.

Front

What is the sales tax on a $6400 purchase with a 6% sales tax rate?

Back

Sales Tax = Total Cost × Sales Tax Rate = $6400 × 0.06 = $384.

Front

How do you compare prices to find the best deal?

Back

Calculate the unit price for each option and compare them; the lower unit price indicates the better deal.

Front

If 15 kg of tomatoes costs $32.25, what is the unit price?

Back

Unit Price = Total Price / Total Weight = $32.25 / 15 kg = $2.15 per kg.