Tip, Tax, Markup

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, usually calculated as a percentage of the total bill.

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total cost of the service by the tip percentage (expressed as a decimal).

Front

What is the formula to find the total cost after adding a tip?

Back

Total Cost = Original Cost + (Original Cost × Tip Percentage)

Front

What is sales tax?

Back

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

Front

How do you calculate sales tax?

Back

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

Front

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

Back

Total Cost = Original Price + (Original Price × Sales Tax Rate)

Front

What is markup?

Back

Markup is the amount added to the cost price of goods to cover overhead and profit.

Front

How do you calculate markup?

Back

Markup = Selling Price - Cost Price.

Front

What is gratuity?

Back

Gratuity is another term for tip, often used in the context of service industries.

Front

If a meal costs $50 and you leave a 15% tip, how much is the tip?

Back

Tip = $50 × 0.15 = $7.50.