Sales Tax Tip Commission Discount

Front

What is sales tax?

Back

Sales tax is a percentage of the price of goods or services that is added to the total cost at the time of purchase.

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Discount Percentage × Original Price)

Front

If an item costs $100 and has a 20% discount, what is the sale price?

Back

Sale Price = $100 - (0.20 × $100) = $80.

Front

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

Back

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

Front

What is a commission?

Back

A commission is a fee paid to a salesperson for their services, usually calculated as a percentage of the sale.

Front

How do you calculate commission?

Back

Commission = Sale Amount × Commission Rate.

Front

If a salesperson sells a car for $20,000 and earns a 5% commission, how much do they earn?

Back

Commission = $20,000 × 0.05 = $1,000.

Front

What is the formula to calculate sales tax?

Back

Sales Tax = Price × Tax Rate.

Front

If a TV costs $500 and the sales tax rate is 8%, how much tax do you pay?

Back

Sales Tax = $500 × 0.08 = $40.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service.