Sales tax, Tips, and Markup

Front

What is sales tax?

Back

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

Front

How do you calculate the final price including sales tax?

Back

To calculate the final price, multiply the original price by the sales tax rate (as a decimal), then add that amount to the original price.

Front

If a T.V costs $990 and has a 7% sales tax, what is the final price?

Back

$1,059.30

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 bill by the tip percentage (as a decimal).

Front

If a lunch costs $20 and you want to leave a 20% tip, how much is the tip?

Back

$4.00

Front

What is the total bill if you leave a 15% tip on a $30 meal?

Back

$34.50

Front

If Daniel's meal costs $28 and he leaves a 20% tip, what is his total bill?

Back

$33.60

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 selling price with markup?

Back

To calculate the selling price, add the markup amount to the cost price.