Sales Tax, Tips, and Markup

Chapter 2 Lesson 6

Answers: 1.60%, increase 2.45% ,increase 3. 24%, Decrease 4.741%, Increase 5.56% Increase 6. B

Vocabulary: Sales Tax: An additional amount of money charged on items that people

buy.

Tip/Gratuity:Small amount of money in return for a service.

Mark-Up: The amount the price of an item is increased above the price the store paid for them.

Selling Price: The amount the customer pays for an item.

Ex.1) Drew wants to buy exercise equipment that costs $140 and the sales tax is 5.75%. What is the total cost of the equipment?

Ex. 2) A customer wants to tip 15% on a restaurant bill that is $35. What will be the total bill with tip?

Practice Problems: 1.A limited-edition soccer ball costs $30, and the sales tax is 6%. What is the total cost?

2. Whitney’s bill at dinner came to $26. What would she pay if she included a 20% tip?

Answers: 1. $31.80

2. $31.20

Practice Problems: 1.  A manicure cost $18.

The sales tax cost 8.25%. You want to tip 20%. Is $22 sufficient to cover the manicure, tax, and tip?

2.The wholesale cost for shirts bought by a sporting goods store is $20 per shirt. The shirts will be marked up 40%. What will be the selling price?

Answers: 1.  No:

28.25% of 18 is $5.09 and $18+$5.09=$23.09

2. $28