Sales Tax and Markup Calculations

The video tutorial covers the concepts of sales tax, tips, and markups, explaining how each is a percentage added to a cost for different reasons. It provides methods for calculating these percentages, including using a graphic organizer, percent proportions, and the percent of change formula. The tutorial includes examples and practice problems to reinforce understanding.

What is the primary reason for adding sales tax to a purchase?

• To provide a discount to customers

• To generate revenue for the government

• To pay for the cost of goods

• To increase the store's profit

Which term is synonymous with 'tip'?

• Gratuity

• Markup

• Sales tax

• Discount

What is the typical percentage range for tips?

• 10-15%

• 15-20%

• 5-10%

• 20-25%

How does a store determine the selling price of an item using markup?

• By using the original cost

• By subtracting a percentage from the cost

• By adding a percentage to the cost

• By adding a fixed amount to the cost

What is the first step in solving a percent problem using a graphic organizer?

• Subtracting the sales tax from the original cost

• Finding the new total

• Multiplying the original cost by the percentage

• Adding the sales tax to the original cost

In a percent proportion problem, what does the denominator represent?

• The part

• The whole

• The sales tax

• The percentage

What formula is used to find the percent of change?

• New amount minus old amount divided by 100

• Old amount divided by new amount minus 1 times 100

• New amount divided by old amount minus 1 times 100

• Old amount minus new amount divided by 100

If Drew bought games for $50 and the total cost was $52.15, what is the sales tax rate?

• 4.3%

• 8.2%

• 2.15%

• 6.5%

What is the sales tax amount if the original price is $24 and the sales tax rate is 8%?

• $4.80

• $3.20

• $2.40

• $1.92

If an item originally costs $10 and is marked up to $35, what is the markup percentage?

• 150%

• 200%

• 250%

• 300%