Exploring Sales Tax, Tip, and Markup Concepts

What is sales tax?

• A fixed amount added to the price of an item.

• A discount given on the original price.

• A percentage of the amount spent, usually going to the state or government.

• A fee for using a credit card.

What is a tip or gratuity?

• An extra amount added to the cost, usually for a service.

• A tax on luxury items.

• A fixed amount added to the price of an item.

• A discount on the total bill.

In Example 1, what is the total cost of the exercise equipment using Method 1?

• $148.05

• $140.00

• $148.50

• $140.85

In Example 1, what is the total cost of the exercise equipment using Method 2?

• $148.50

• $140.85

• $148.05

• $140.00

In Example 2, what is the total bill with a 15% tip on a $35 restaurant bill using Method 1?

• $40.25

• $38.50

• $39.75

• $35.00

In Example 2, what is the total bill with a 15% tip on a $35 restaurant bill using Method 2?

• $39.75

• $35.00

• $38.50

• $40.25

In Example 3, is $25 sufficient to cover a $20 haircut with a 4.75% tax and a 15% tip?

• No, it is not enough.

• Yes, with $1.05 left over.

• No, you need $26.

• Yes, with $0.50 left over.

In Example 3, what is the total cost of the haircut with tax and tip?

• $23.95

• $20.00

• $22.50

• $25.00

In Example 4, what is the selling price of a GPS navigation system with a 25% markup if the store pays $56?

• $70.00

• $65.00

• $75.00

• $56.00

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

• $12.00

• $10.00

• $14.00

• $16.00