Sales Tax, Tipping, & Discounts: Oh my

Sales Tax, Tipping, & Discounts: Oh my

Correct Order

• discount is calculated first

• sales tax is based on discounted amount

• the tip should be based on the original amount

Video Example!

discount & tax

Multiple Choice

Click on the photo. What is the subtotal?

• $19.87

• $20.65

• $21.69

• $17.84

Multiple Choice

Click on the photo. Find the 20% discount on the subtotal.

(.20 x 19.87)

• $3.97

• $11.84

• $2.60

• $1.55

Multiple Choice

Click on the photo. Find the new subtotal.

• $15.90

• $23.84

• $12.67

• $20.87

Multiple Choice

Calculate 8% sales tax based on the new subtotal.

• $1.27

• $18.11

• $3.50

• $5.19

Multiple Choice

Finally, Calculate the final total

• $17.17

• $15.86

• $4.67

• $25.46

Key take away

-discount is based on subtotal

-tax is based on new subtotal (after discount)

Video example!

with tip

Multiple Choice

Let's try an example with tip. Click on the photo. Calculate the 5% discount on the total.

• $2.30

• $5.50

• $43.66

• $1.80

Multiple Choice

Calculate the new subtotal

• $43.66

• $47.33

• $35.11

• $32.56

Multiple Choice

Calculate the 8% sales tax based on the new subtotal

• $3.49

• $2.16

• $34.26

• $17.09

Multiple Choice

Calculate a 20% tip based on the subtotal before the discount

• $9.19

• $11.16

• $8.60

• $10.11

Multiple Choice

Finally Calculate total by adding tax AND tip to the new subtotal.

• $56.34

• $30.78

• $45.21

• $49.90

Big takeaway

-tip is based on original subtotal!