s ales tax & t otal p urchase price. sales tax a tax charged by most states on the selling price...
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SALES TAX & TOTAL PURCHASE PRICE
sales tax
A tax charged by most states on the selling price of a good or service, usually expressed as a percent.
Key Words to Know
Sales Tax = Total Selling Price × Sales Tax Rate
Formula
Ron Engle bought a camera that had a selling price of $129.99 and a pack of film that had a selling price of $18.95.
What is the sales tax on his purchases if he lives in Connecticut, where the sales tax rate is 6 percent?
Do Now
Find the total selling price.
$129.99 + $18.85 = $148.94
Step 1
Find the sales tax.
Total Selling Price × Sales Tax Rate
$148.94 × 6%
$148.94 × 0.06 = 8.9364 =
$8.94 sales tax
Step 2
Assignment:
Workbook Page 41, 1-5
DETERMINING TOTAL PURCHASE PRICE
sales receipt
Proof of purchase of a good or service from a store.
total purchase price
The selling price of an item plus the sales tax.
Key Words to Know
Total Purchase Price = Total Selling Price + Sales Tax
Formula
A store in Madison, Wisconsin, advertised a smoke alarm for $24.95 and a fire extinguisher for $39.95.
What is the sales tax if the combined state and city rate is 6 percent?
What is the total purchase price?
Do Now
Find the total selling price.
$24.95 + $39.95 = $64.90
Answer: Step 1
Find the sales tax.
Total Selling Price × Sales Tax Rate
$64.90 × 0.06 = 3.894 = $3.89
Answer: Step 2
Find the total purchase price.
Total Selling Price + Sales Tax
$64.90 + $3.89 =
$68.79
Answer: Step 3
Clayton Young buys 4 packages of alkaline batteries for $1.99 each, a bottle of sunscreen for $5.96, 2 boxes of adhesive bandages for $2.56 each, and a tube of toothpaste for $1.76. The combined state and city sales tax rate is 5.25 percent.
What is the total purchase price?
Practice 1
$21.89
Practice 1 Answer
Ethan Campbell bought 3 pairs of dress pants for $34.99 each, 4 dress shirts for $29.99 each, and 2 ties for $19.99 each. The combined state, county, and city sales tax is 7 percent.
What is the total purchase price?
Practice 2
$283.45
Practice 2 Answer
UNIT PRICING & COMPARISON SHOPPING
unit pricing (p. 237)
The cost of an item per unit of measure or count, such as dollars per pound or cents per dozen.
Key Words to Know
Unit Price = Price per Item ÷ Measure or Count
Formula
Shane Burns purchased a 34.5-ounce can of coffee for $3.99, a 2-liter bottle of cleaner for $3.98, and a dozen oranges for $3.96.
What is the unit price of the items to the nearest tenth of a cent?
Do Now
Find the unit price.
Price per Item ÷ Measure or Count
Coffee: $3.99 ÷ 34.5 = $0.11565 = $0.116 or $0.12 per ounce
Cleaner: $3.98 ÷ 2 = $1.99 per liter
Oranges: $3.96 ÷ 12 = $0.33 per orange
Answer
Oatmeal is sold in three sizes. The price of an 18-ounce package is $1.86. The price of a 42-ounce package is $3.17. The price of a 112-ounce package is $6.29.
Based on price alone, which package is the best buy?
Do Now
Find the unit price for each item.
Price per Item ÷ Measure or Count
18-ounce package: $1.86 ÷ 18 = $0.10333
$0.10333 × 100 = 10.33¢ per ounce
Answer: Step 1
42-ounce package: $3.17 ÷ 42 = $0.07547
$0.07547 × 100 = 7.55¢ per ounce
112-ounce package: $6.29 ÷ 112 = $0.05616
$0.05616 × 100 = 5.62¢ per ounce
Answer: Step 1 (cont.)
Find the best buy.
Compare: 10.33¢, 7.55¢, and 5.62¢ per ounce
5.62¢ is the best buy.
Answer: Step 2
Assignment:Workbook p. 42, #
1-8
COUPONS AND REBATES
coupons
Discounts offered by businesses in the form of tickets that are redeemed at the time of purchase.
rebates
Discounts offered by businesses in the form of money given back to the customer, usually through the mail.
Key Words to Know
Final Price = Total Selling Price – Total Savings
Formula
Gus Senton purchased a heavy-duty table saw for $249.00 and a compressor for $349.00. He had a coupon for $50 off.
What is the final price of the items?
Do Now
Step: Find the final price.
Total Selling Price – Total Savings
($249 + $349) – $50 =
$598 – $50 = $548
Answer
Assignment:Workbook p.43
#1-7
MARKDOWN AND SALES PRICE
markdown
The difference between the regular selling price of an item and its sale price, or the amount of the discount.
Key Words to Know
markdown rate
The discount on an item expressed as a percentage of its regular selling price, such as 20 percent off.
Key Words to Know
Markdown =
Regular Selling Price – Sale Price
Formula
Markdown = Regular Selling Price × Markdown Rate
Formula
Nora Maag purchased a camcorder at a sale price of $499.99. The regular selling price is $549.99.
What was the markdown?
Do Now
Step 1: Find the markdown.
Regular Selling Price – Sale Price
$549.99 – $499.99 = $50.00
Answer
Furniture World has a special on oak furniture at 40 percent to 55 percent off the regular selling price. Chad Wolfrum purchased an oak table at 40 percent off the regular price of $799.
How much is the markdown?
Do Now 2
Step 2: Find the markdown.
Regular Selling Price × Markdown Rate
$799.99 × 40% = $319.60
Do Now 2 Answer
Debralee Medford has a 25 percent off coupon and is purchasing a watch that has a regular price of $125.00.
What will she pay for the watch?
Do Now 1
Find the markdown.
Regular Selling Price × Markdown Rate
$125.00 × 25% = $31.25 markdown
Answer: Step 1
Find the sale price.
Regular Selling Price – Markdown
$125.00 – $31.25 = $93.75
Answer: Step 2
Assignment:Workbook
p.44