Shopping can include math in many areas: such as sales tax, discounts, and profit margin.
Change the sales tax into decimal form. For instance:
7.5% sales tax becomes .075 in decimal form
3.4% sales tax becomes .034 in decimal form
5% sales tax becomes .05 in decimal form
Formula: Item or service cost x sales tax (in decimal form) = total sales tax.
Sample calculation: $60 (item cost) x .075 (sales tax) = $4.50 total sales tax
Once you've calculated sales tax, make sure to add it to the original cost to get the total cost.
Procedure:
The profit margin formula is net income divided by net sales.
Net sales is gross sales minus discounts, returns, and allowances.
Net income is total revenue minus expenses.
This page by: Demian G. ('21)