Markup and Markdown

Front

What is the formula to calculate the total cost including sales tax?

Back

Total Cost = Price + (Price * Tax Rate) or Total Cost = Price * (1 + Tax Rate)

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Original Price * Discount Rate) or Sale Price = Original Price * (1 - Discount Rate)

Front

What is the definition of sales tax?

Back

Sales tax is a consumption tax imposed by the government on the sale of goods and services, calculated as a percentage of the sale price.

Front

How do you calculate the amount of sales tax on a purchase?

Back

Sales Tax Amount = Price * Tax Rate

Front

What does a markup percentage indicate?

Back

Markup percentage indicates how much more than the cost price a seller charges for a product, expressed as a percentage of the cost price.

Front

How do you find the original price before markup?

Back

Original Price = Selling Price / (1 + Markup Rate) or Original Price = Selling Price * (1 - Markup Rate) if the markup is expressed as a percentage.

Front

What is the formula to calculate the discount amount?

Back

Discount Amount = Original Price * Discount Rate

Front

If an item is priced at $50 with a 20% discount, what is the sale price?

Back

Sale Price = $50 * (1 - 0.20) = $40

Front

What is the difference between markup and discount?

Back

Markup is the amount added to the cost price to determine the selling price, while discount is the reduction from the original selling price.

Front

How do you convert a percentage to a decimal for calculations?

Back

To convert a percentage to a decimal, divide the percentage by 100 (e.g., 25% = 0.25).