Markup, Discount, Tip, and Tax

Front

What is markup?

Back

Markup is the amount added to the cost price of a product to determine its selling price. It is usually expressed as a percentage of the cost price.

Front

How do you calculate the selling price with markup?

Back

Selling Price = Cost Price + (Markup Percentage × Cost Price)

Front

What is a discount?

Back

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

Front

How do you calculate the sale price after a discount?

Back

Sale Price = Original Price - (Discount Percentage × Original Price)

Front

What is the formula to find the final price after applying a discount?

Back

Final Price = Original Price × (1 - Discount Percentage)

Front

What is tax in terms of purchases?

Back

Tax is a mandatory financial charge or levy imposed by a government on the sale of goods and services.

Front

How do you calculate the total cost including tax?

Back

Total Cost = Price + (Tax Percentage × Price)

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 the total bill including a tip?

Back

Total Bill = Original Bill + (Tip Percentage × Original Bill)

Front

If an item costs $21.95 and has a markup of 65%, what is the selling price?

Back

Selling Price = $21.95 + (0.65 × $21.95) = $36.22