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)

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 $ 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 $ oz for $ oz for $6.29

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 $ and a compressor for $ He had a coupon for $50 off. What is the final price of the item?

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 $ The regular selling price is $ 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?

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?