Tax, Tip, Discount, and Commission

Front

What is a commission?

Back

A commission is a fee paid to an employee or agent for services rendered, typically calculated as a percentage of the sales made.

Tags

CCSS.6.RP.A.3C

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (as a decimal). For example, if the sales are $1000 and the commission rate is 5%, the commission is $1000 x 0.05 = $50.

Tags

CCSS.6.RP.A.3C

Front

What is a markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit. It is usually expressed as a percentage of the cost price.

Tags

CCSS.6.RP.A.3C

Front

How do you calculate markup percentage?

Back

Markup percentage is calculated by taking the difference between the selling price and the cost price, dividing it by the cost price, and then multiplying by 100. Formula: ((Selling Price - Cost Price) / Cost Price) x 100.

Tags

CCSS.6.RP.A.3C

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Tags

CCSS.6.RP.A.3C

Front

How do you calculate the selling price after a discount?

Back

To calculate the selling price after a discount, subtract the discount amount from the original price. Formula: Selling Price = Original Price - Discount Amount.

Tags

CCSS.6.RP.A.3C

Front

What is the formula to find the total cost after tax?

Back

Total Cost = Original Price + (Original Price x Tax Rate). For example, if the original price is $100 and the tax rate is 5%, Total Cost = $100 + ($100 x 0.05) = $105.

Tags

CCSS.6.RP.A.3C

Front

If a product costs $50 and has a 10% tax, what is the total cost?

Back

Total Cost = $50 + ($50 x 0.10) = $50 + $5 = $55.

Tags

CCSS.6.RP.A.3C

Front

What is the difference between gross and net income?

Back

Gross income is the total earnings before any deductions (like taxes or commissions), while net income is the amount remaining after all deductions.

Front

If a store sells a couch for $800 that cost $500, what is the profit?

Back

Profit = Selling Price - Cost Price. Profit = $800 - $500 = $300.

Tags

CCSS.6.RP.A.3B