Sales Tax Tip Discount Markup

Front

What is sales tax?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Regular Price - (Regular Price x Discount Rate)

Front

What is a discount?

Back

A discount is a reduction in the regular price of a product, usually expressed as a percentage.

Front

If a product costs $50 and has a 20% discount, what is the discount amount?

Back

Discount Amount = $50 x 0.20 = $10.

Front

What is markup?

Back

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

Front

How do you calculate the selling price with markup?

Back

Selling Price = Cost Price + (Cost Price x Markup Rate)

Front

If a jacket costs $85 and is sold at 40% off, what is the sale price?

Back

Sale Price = $85 - ($85 x 0.40) = $51.

Front

What is the formula to calculate sales tax?

Back

Sales Tax = Sale Price x Tax Rate.

Front

If a TV costs $899 and the tax rate is 6.5%, how much tax do you pay?

Back

Tax = $899 x 0.065 = $58.43.

Front

What is the amount of discount on a $15 DVD marked 10% off?

Back

Discount Amount = $15 x 0.10 = $1.50.