Unit 5 Lesson 6 Review

Front

What is total cost?

Back

Total cost is the sum of the original price of an item plus any additional charges such as tax and tips.

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 $25 bill and a 20% tip: $25 x 0.20 = $5.

Front

What is a markup?

Back

A markup is the amount added to the cost price of goods to cover overhead and profit. It is usually expressed as a percentage of the cost price.

Front

How do you calculate the retail price after a markup?

Back

To find the retail price after a markup, add the markup amount to the cost price. For example, if a shirt costs $10 and has a 30% markup: $10 + ($10 x 0.30) = $13.

Front

What is sales tax?

Back

Sales tax is a tax imposed by the government on the sale of goods and services, usually calculated as a percentage of the purchase price.

Front

How do you calculate total cost including sales tax?

Back

To calculate total cost including sales tax, multiply the original price by the sales tax rate (as a decimal) and add it to the original price. For example, for a $675 computer with a 6% tax: $675 + ($675 x 0.06) = $715.50.

Front

What is the formula for calculating percentage?

Back

The formula for calculating percentage is: (part/whole) x 100. For example, if you have 20 out of 100, the percentage is (20/100) x 100 = 20%.

Front

How do you find the amount of a tip based on a percentage?

Back

To find the amount of a tip based on a percentage, multiply the total bill by the tip percentage. For example, for an $18.75 bill with an 18% tip: $18.75 x 0.18 = $3.375.

Front

What is the difference between gross and net price?

Back

Gross price is the total amount before any deductions (like discounts or taxes), while net price is the amount after deductions.

Front

What does it mean to leave a tip?

Back

Leaving a tip means giving extra money to service workers (like waiters) as a reward for good service, usually calculated as a percentage of the total bill.