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.
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