Key Concepts

• Sales Tax The sales tax is a percent of the purchase price.
  • [latex]\text{sales tax}=\text{tax rate}\cdot \text{purchase price}[/latex]
  • [latex]\text{total cost}=\text{purchase price}+\text{sales tax}[/latex]
• Commission A commission is a percentage of total sales as determined by the rate of commission.
  • [latex]\text{commission}=\text{rate of commission}\cdot \text{original price}[/latex]
• Discount An amount of discount is a percent off the original price, determined by the discount rate.
  • [latex]\text{amount of discount}=\text{discount rate}\cdot \text{original price}[/latex]
  • [latex]\text{sale price}=\text{original price}-\text{discount}[/latex]
• Mark-up The mark-up is the amount added to the wholesale price, determined by the mark-up rate.
  • [latex]\text{amount of mark-up}=\text{mark-up rate wholesale price}[/latex]
  • [latex]\text{list price}=\text{wholesale price}+\text{mark up}[/latex]

Glossary

commission

A commission is a percentage of total sales as determined by the rate of commission.

discount

An amount of discount is a percent off the original price, determined by the discount rate.

mark-up

The mark-up is the amount added to the wholesale price, determined by the mark-up rate.

sales tax

The sales tax is a percent of the purchase price.