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6.1 Sales Tax6.2 Total Purchase PriceMost states charge sales tax on goods sold.Tax is on the selling price of an item.Usually expressed as a percent.Varies from state to state.Money is used to pay for fire, police and otherservices.Sales receipt: proof of purchase.◦Could be handwritten if not a register receipt.◦Shows the selling price of each item purchased, thetotal selling price any sales tax, and the total purchaseprice.Total purchase price: the selling price plus the salestaxCalculations:◦Sales Tax = Total Selling Price x Sales Tax Rate◦Total Purchase Price = Total Selling Price + Sales TaxShort Cut:◦Purchase Price = Selling Price x (100% + Sales Tax Rate)
6.3 Unit Pricing6.4 Comparison ShoppingUnit Pricing: a system that allows shoppers to comparethe price of various items quickly and easily.◦Theprice of the item divided by its measure or count◦May be expressed as dollars per pound or cents per dozenStores often give unit price information for theirproducts.
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Presentation on theme: "6.1 Sales Tax 6.2 Total Purchase Price Most states charge sales tax on goods sold. Tax is on the selling price of an item. Usually expressed as a percent."— Presentation transcript:
1 6.1 Sales Tax 6.2 Total Purchase Price Most states charge sales tax on goods
sold. Tax is on the selling price of an item. Usually expressed as a percent. Varies from state to state. Money is used to pay for fire, police and other services. Sales receipt: proof of purchase. ◦ Could be handwritten if not a register receipt. ◦ Shows the selling price of each item purchased, the total selling price any sales tax, and the total purchase price. Total purchase price: the selling price plus the sales tax Calculations: ◦ Sales Tax = Total Selling Price x Sales Tax Rate ◦ Total
Purchase Price = Total Selling Price + Sales Tax Short Cut: ◦ Purchase Price = Selling Price x (100% + Sales Tax Rate)
2 6.3 Unit Pricing 6.4 Comparison Shopping Unit Pricing: a system that allows shoppers to compare the price of
various items quickly and easily. ◦ The price of the item divided by its measure or count ◦ May be expressed as dollars per pound or cents per dozen Stores often give unit price information for their products. We use the information to determine which size of a product is the better buy based solely on price. You compare unit prices of products so you can decide which size to buy. ◦ If price is the only consideration, then the one with the lowest unit price is the better buy. ◦ Then look to the
size. If the larger size is the better buy, consider whether or not you will use it all before it goes bad. Calculations: ◦ Unit Price = Price per Item ÷ Measure or Count What is each unit price to the nearest tenth of a cent? 34.5-ounce can of coffee for $3.99 2-liter bottle of cleaner for $3.98 A dozen oranges for $3.96 Oatmeal is sold in three sizes. Based on the price alone, which of the following is the best buy? 18 oz for $1.86 42oz for $3.17 112 oz for $6.29
3 6.5 Coupons and Rebates Coupons, rebates and refunds are special discounts offered from manufacturers, stores, and service establishments. ◦ Incentive for customers to purchase a particular item. ◦ Coupons are redeemed at the time of purchase. ◦
Rebates are mailed in using the rebate coupon, sales slip and the UPC label (Universal Product Code). Calculations: ◦ Final Price = Total Selling Price – Total Savings Sal purchased a heavy-duty nailer for $249.00 and a compressor for $349.00. He had a coupon for $50 off. What is the final price of the item?
4 6.6 Markdown Stores often sell products at sale prices, which are lower than their regular selling prices. The markdown, or discount, is the amount of money that you save by purchasing a product at the sale price. Markdown Rate: an item’s markdown expressed as a percent of its
regular selling price. ◦ Businesses often advertise the markdown rate rather than the sale price. Calculations: ◦ Markdown = Regular Selling Price – Sale Price ◦ Markdown = Regular Selling Price x Markdown Rate Nora purchased a camcorder at a sale price of $499.99. The regular selling price is $549.99. What was the markdown? Furniture World has a special on oak furniture at 40 percent to 55 percent off the regular selling price. Chuck purchased an oak table at 40 percent off the regular price of
$799. How much is the markdown?
5 6.7 Sale Price Stores advertise the amount of markdown in a variety of ways. If you know the markdown you can find the sale price in the following ways… Calculations: ◦ Sale Price = Regular Selling Price – Markdown ◦ Sale Price = Percent Paid x Regular Selling
Price Percent Paid = 100% – Percent Off Debbie has a 25 percent off coupon and is purchasing a watch that has a regular price of $125. What is the sale price for the watch?