Tip, Tax, Markup

Front

What is a tip?

Back

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

Front

How do you calculate a tip?

Back

To calculate a tip, multiply the total bill by the tip percentage (as a decimal). For example, for a 20% tip on a $40 bill, calculate 40 x 0.20 = $8.

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 (as a decimal). For example, for a $100 item with a 6% tax, calculate 100 x 0.06 = $6.

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 the total price including tax?

Back

To find the total price including tax, add the sales tax to the original price. For example, if an item costs $100 and the tax is $6, the total price is $100 + $6 = $106.

Front

What does 'added to' mean in the context of gratuity?

Back

'Added to' means that the gratuity (tip) is included in the final total amount you pay.

Front

What is 15% of $30?

Back

15% of $30 is $4.50, calculated as 30 x 0.15.

Front

What is 82% as a decimal?

Back

82% as a decimal is 0.82.

Front

If a meal costs $40.84, what is the total cost with a 20% tip?

Back

The total cost with a 20% tip is $40.84 + $8.17 (tip) = $48.01.