Mark-ups, Tax, and Tips

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 amount by the tip percentage (expressed as a decimal). For example, for a $100 bill and a 15% tip, the calculation is $100 x 0.15 = $15.

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 sales tax?

Back

To calculate sales tax, multiply the price of the item by the sales tax rate (expressed as a decimal). For example, for a $50 item with a 6% sales tax, the calculation is $50 x 0.06 = $3.

Front

What is the formula to find the total cost including tax?

Back

Total Cost = Item Price + (Item Price x Sales Tax Rate).

Front

What is gratuity?

Back

Gratuity is another term for a tip, often used in the context of dining or service industries.

Front

How do you find the gratuity amount?

Back

To find the gratuity amount, multiply the total bill by the gratuity percentage (expressed as a decimal). For example, for a $80 bill and an 18% gratuity, the calculation is $80 x 0.18 = $14.40.

Front

What is a mark-up?

Back

A mark-up is the amount added to the cost price of goods to cover overhead and profit.

Front

How do you calculate the selling price with a mark-up?

Back

Selling Price = Cost Price + (Cost Price x Mark-up Percentage).

Front

If a meal costs $50 and you want to leave a 20% tip, how much is the tip?

Back

The tip would be $50 x 0.20 = $10.