Calculating Sales Tax and Total Cost

Front

What is sales tax?

Back

Sales tax is a percentage of the price of a product or service that is added to the total cost, collected by the seller and paid to the government.

Front

How do you calculate the total cost including sales tax?

Back

Total Cost = Price + (Price x Sales Tax Rate).

Front

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

Back

Total Cost = $50 + ($50 x 0.05) = $52.50.

Front

What is the formula to calculate sales tax?

Back

Sales Tax = Price x Sales Tax Rate.

Front

If you buy 3 items priced at $20 each and the sales tax is 6%, what is the total cost?

Back

Total Cost = (3 x $20) + ((3 x $20) x 0.06) = $63.60.

Front

What is a commission?

Back

A commission is a fee paid to an employee based on the sales they make, usually expressed as a percentage of the sales amount.

Front

How do you calculate total pay including commission?

Back

Total Pay = Salary + (Sales x Commission Rate).

Front

If a person earns a salary of $400 and has a 10% commission on $2000 in sales, what is their total pay?

Back

Total Pay = $400 + ($2000 x 0.10) = $600.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

Front

If a meal costs $30 and you leave a 15% tip, how much is the tip?

Back

Tip = $30 x 0.15 = $4.50.