Tax, Tip, Discount, Commission and Markup Review

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

How do you calculate the final price after a discount?

Back

Final Price = Original Price - (Original Price × Discount Rate)

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 the total price including sales tax?

Back

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

Front

What is commission?

Back

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

Front

How do you calculate total earnings with commission?

Back

Total Earnings = Base Salary + (Sales Amount × Commission Rate)

Front

What is markup?

Back

Markup is the amount added to the cost price of a product to determine its selling price, usually expressed as a percentage.

Front

How do you calculate the selling price with markup?

Back

Selling Price = Cost Price + (Cost Price × Markup Rate)

Front

What is the formula for calculating a percentage?

Back

Percentage = (Part / Whole) × 100

Front

If a concert ticket costs $100 and has a 21% discount, what is the discount amount?

Back

Discount Amount = $100 × 0.21 = $21