Sales Tax, Tips, and Markup
Transcript of Sales Tax, Tips, and Markup
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