Calculating Final Prices with Sales Tax, Tip, and Markup

This video tutorial explains how to calculate sales tax, gratuity, and markup. It covers the steps to convert percentages to decimals, multiply by the original price, and add the result to the original price. Examples are provided for each concept, demonstrating how to find the total cost including sales tax, the total bill with gratuity, and the selling price after markup. Viewers are encouraged to pause and solve practice problems to reinforce learning.

Why are sales tax, gratuity, and markup combined in the same video?

• Because they are all related to expenses.

• Because they are all types of taxes.

• Because they are all related to discounts.

• Because they involve similar calculation steps.

What is the first step in calculating sales tax?

• Convert the percentage to a decimal.

• Multiply the price by the tax rate.

• Subtract the tax from the original price.

• Add the tax to the original price.

If an item costs $140 and the sales tax is 7.5%, what is the total cost?

• $148.25

• $147.50

• $152.00

• $150.50

What is a gratuity?

• A tax on luxury items.

• An additional charge on an item.

• A small amount of money given for a service.

• A discount on a product.

How do you convert a percentage to a decimal?

• Multiply by 100.

• Divide by 100.

• Subtract 100 from the percentage.

• Add 100 to the percentage.

A customer wants to tip 15% on a $55 bill. What is the total bill with the tip?

• $62.50

• $63.25

• $60.00

• $65.00

What is a markup?

• The amount added to the cost price to determine the selling price.

• An additional charge for a service.

• A discount given by the store.

• A tax on imported goods.

If a store buys a part for $75 and marks it up by 60%, what is the selling price?

• $115

• $120

• $130

• $125

What is the final step in calculating markup?

• Add the markup to the buying price.

• Divide the buying price by the markup percentage.

• Subtract the markup from the buying price.

• Multiply the buying price by the markup percentage.

What is the correct answer for the practice problem on markup?

• $6.00

• $5.50

• $4.50

• $5.00