6-5 Discount and 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 (expressed as a decimal). For example, for an 18% tip on a $67.45 bill, calculate 67.45 * 0.18 = $12.14.

Front

What is a discount?

Back

A discount is the amount by which the regular price of an item is reduced.

Front

How do you calculate a discount?

Back

To calculate a discount, multiply the original price by the discount percentage (expressed as a decimal) and subtract that amount from the original price.

Front

What is markup?

Back

Markup is the amount that the price of an item is increased by, usually expressed as a percentage of the cost price.

Front

How do you calculate the retail price using markup?

Back

To calculate the retail price, add the markup amount to the cost price. Retail Price = Cost Price + (Cost Price * Markup Percentage).

Front

What is commission?

Back

Commission is a fee paid to an employee based on the sales they generate, typically expressed as a percentage of the sales amount.

Front

How do you calculate commission?

Back

To calculate commission, multiply the total sales amount by the commission rate (expressed as a decimal).

Front

If a store pays $32.00 for a video game and marks it up by 75%, what is the retail price?

Back

Retail Price = $32.00 + ($32.00 * 0.75) = $32.00 + $24.00 = $56.00.

Front

What is the formula for calculating the total cost including tax?

Back

Total Cost = Original Price + (Original Price * Sales Tax Rate).