Sales Tax, Tips, and Markup Concepts

The video tutorial by Mr. Burden covers real-world applications of sales tax, tips, and markups. It begins with an introduction to key vocabulary terms, followed by methods to calculate sales tax and total costs. The tutorial then explains how to calculate tips and total costs using two different methods. It also demonstrates how to combine sales tax and tips to find the total cost. Finally, the video explains markup and how to calculate the selling price of an item. Through examples, the tutorial provides a comprehensive understanding of these financial concepts.

What is sales tax?

• A discount on the price of an item

• An additional amount of money charged on items that people buy

• The original price of an item

• A fee for returning an item

How do you convert a percentage to a decimal?

• Multiply by 100

• Divide by 10

• Multiply by 10

• Divide by 100

If an item costs $140 and the sales tax is 5.75%, what is the total cost using Method 1?

• $149.00

• $147.50

• $148.05

• $148.50

What is the first step in calculating the tip using Method 1?

• Subtract the tip from the total cost

• Add the tip to the total cost

• Convert the tip percentage to a decimal

• Multiply the tip percentage by the total cost

A customer wants to tip 15% on a $35 bill. What is the total bill with the tip using Method 2?

• $40.75

• $40.50

• $40.25

• $40.00

What is the combined percentage of sales tax and tip if the sales tax is 4.75% and the tip is 15%?

• 20.00%

• 20.25%

• 19.50%

• 19.75%

If a haircut costs $20 and the combined sales tax and tip is 19.75%, what is the total cost?

• $23.50

• $24.25

• $23.75

• $24.00

What is a markup?

• A discount on the price of an item

• The amount the price of an item is increased above the store's cost

• A fee for returning an item

• The original price of an item

If a store pays $150 for an item and the markup is 40%, what is the selling price?

• $190

• $200

• $210

• $220

How do you calculate the markup amount?

• Add the markup percentage to the store's cost

• Multiply the store's cost by the markup percentage

• Divide the store's cost by the markup percentage

• Subtract the markup percentage from the store's cost