Sales Tax and Markup Strategies Explained

The video tutorial explains how to calculate sales tax, tips, and markup using two methods. Method 1 involves finding the additional amount and adding it to the regular price, while Method 2 involves adding the additional percentage to 100% and multiplying by the regular price. The tutorial provides examples for each scenario: calculating sales tax on exercise equipment, calculating a tip on a restaurant bill, and calculating markup on a GPS navigation system. Both methods yield the same total price, but the choice of method depends on whether the problem asks for the additional amount or the total price.

What is sales tax?

• A refund on purchases

• A fee for shipping

• An additional amount charged on items

• A discount on the total price

Which method is useful when asked for just the sales tax?

• Method 2

• Neither method

• Method 1

• Both methods

In Example 1, what is the sales tax amount for the exercise equipment?

• $7.50

• $8.05

• $9.00

• $10.00

What is the total cost of the exercise equipment in Example 1 using Method 1?

• $150.00

• $148.05

• $146.50

• $145.00

In Example 2, what is the total cost of the exercise equipment using Method 2?

• $145.00

• $146.50

• $148.05

• $150.00

What is a tip or gratuity?

• A refund on the bill

• A fee for using a credit card

• A small amount of money in return for a service

• A discount on the bill

In Example 3, what is the tip amount for a $35 restaurant bill?

• $4.50

• $5.00

• $5.25

• $6.00

What is the total bill with tip in Example 3 using Method 1?

• $41.00

• $40.25

• $39.75

• $38.50

In Example 4, what is the markup amount for the GPS navigation system?

• $15.00

• $14.00

• $13.50

• $12.00

What is the selling price of the GPS navigation system in Example 4 using Method 2?

• $68.00

• $71.00

• $69.50

• $70.00