Sales Tax and Markup Essentials

The video tutorial explains sales tax, tips, and markups as additional costs to customers. It demonstrates how to calculate these costs by converting percentages to decimals and multiplying by the total amount. Examples include calculating sales tax on exercise equipment, tips on a restaurant bill, and markups on a GPS system. The tutorial emphasizes understanding these concepts to determine the total cost of a product or service.

What are sales tax, tips, and markups considered as?

• Base prices of products

• Additional costs to the customer

• Discounts on products

• Refunds

How do you calculate the total cost including sales tax?

• Subtract the tax from the original price

• Multiply the tax by the original price

• Add the tax to the original price

• Divide the tax by the original price

What is the first step in calculating sales tax?

• Subtract the tax from the original price

• Convert the percentage to a decimal

• Multiply the tax by the original price

• Add the tax to the original price

If the sales tax is 5.75% and the item costs $140, what is the tax amount?

• $8.05

• $10.00

• $7.00

• $5.75

What is the total cost of an item priced at $140 with a 5.75% sales tax?

• $150.00

• $145.75

• $140.00

• $148.05

What is a common percentage range for tipping at a restaurant?

• 20-25%

• 15-20%

• 10-15%

• 5-10%

How do you convert a percentage to a decimal?

• Multiply by 100

• Subtract 100

• Divide by 100

• Add 100

If a restaurant bill is $35 and the tip is 15%, what is the tip amount?

• $6.00

• $5.50

• $5.00

• $5.25

What is the total bill if the original amount is $35 and the tip is $5.25?

• $41.00

• $42.00

• $40.00

• $40.25

If a store buys a GPS for $56 and marks it up by 25%, what is the selling price?

• $60

• $65

• $70

• $75