Flashcard: Discount, Sales Tax, Tip, and Markup

Front

What is a discount?

Back

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

Front

How do you calculate the final price after a discount?

Back

Final Price = Original Price - (Original Price x Discount Percentage)

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 cost including sales tax?

Back

Total Cost = Price + (Price x Sales Tax Percentage)

Front

What is a tip?

Back

A tip is a small amount of money given to service workers, typically calculated as a percentage of the total bill.

Front

How do you calculate the total cost including a tip?

Back

Total Cost = Bill Amount + (Bill Amount x Tip Percentage)

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit, usually expressed as a percentage.

Front

How do you calculate the selling price using markup?

Back

Selling Price = Cost Price + (Cost Price x Markup Percentage)

Front

If a jacket costs $58 and is on sale for 40% off, what is the sale price?

Back

Sale Price = $58 - ($58 x 0.40) = $34.80

Front

If the sale price of a jacket is $34.80 and the sales tax is 7.5%, what is the final price?

Back

Final Price = $34.80 + ($34.80 x 0.075) = $37.41