Taxes, Tips, Markups, Discounts

Front

What is a tip and how is it typically calculated?

Back

A tip is a sum of money given to service workers as a reward for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate the total bill after adding a tip?

Back

To calculate the total bill after adding a tip, multiply the original bill amount by the tip percentage, then add that amount to the original bill.

Front

What is sales tax and how is it applied to purchases?

Back

Sales tax is a percentage of the purchase price added to the total cost of goods or services, collected by the seller and paid to the government.

Front

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

Back

To calculate sales tax, multiply the purchase price by the sales tax rate (expressed as a decimal).

Front

What is the formula to find the total cost of an item including tax?

Back

Total Cost = Purchase Price + (Purchase Price x Sales Tax Rate).

Front

What is a markup and how is it different from a discount?

Back

A markup is an increase in the price of a product, while a discount is a reduction from the original price.

Front

How do you calculate the final price after applying a discount?

Back

To calculate the final price after a discount, subtract the discount amount from the original price.

Front

What does it mean to subtract a discount from the price?

Back

Subtracting a discount from the price means reducing the original price by the amount of the discount.

Front

How do you calculate the total cost of a meal including tax and gratuity?

Back

Total Cost = Meal Price + (Meal Price x Sales Tax Rate) + [(Meal Price + (Meal Price x Sales Tax Rate)) x Gratuity Rate].

Front

What is the difference between a gratuity and a tip?

Back

A gratuity is often synonymous with a tip, but it can also refer to a service charge included in the bill, while a tip is usually given voluntarily.