Sales tax, tip, discount, markup

Front

What is sales tax?

Back

A sales tax is a percentage of the sale price of goods and services that is added to the total cost, collected by the seller and paid to the government.

Front

How do you calculate the amount of sales tax?

Back

To calculate sales tax, multiply the sale price by the sales tax rate (as a decimal). For example, if an item costs $100 and the sales tax is 5%, the sales tax is $100 x 0.05 = $5.

Front

What is a tip?

Back

A tip is a small amount of money given to someone for their service, typically in the hospitality industry, as a way to show appreciation.

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 $50 bill with a 20% tip, the tip is $50 x 0.20 = $10.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

How do you calculate the amount of a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (as a decimal). For example, for an $80 item with a 30% discount, the discount is $80 x 0.30 = $24.

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 of the cost.

Front

How do you calculate the selling price with markup?

Back

To calculate the selling price with markup, add the markup amount to the cost price. For example, if an item costs $50 and has a 20% markup, the selling price is $50 + ($50 x 0.20) = $60.

Front

If a meal costs $38.28, how much is a 20% tip?

Back

$7.66

Front

If groceries cost $135.75 and the sales tax is 4%, what is the total cost?

Back

$141.18