Final answer:
Commission is a fee paid for a service, particularly a percentage of sales, not a tax. Taxes, like sales, income, and corporate taxes, are compulsory payments made to the government and are based on different criteria. When calculating totals at a store or restaurant, one must consider the applicable sales tax and any gratuities or tips.
Step-by-step explanation:
Commission is a fee paid to someone for providing a service, specifically a percent they earn on sales. This is different from a gratuity, which is a voluntary amount paid for services, typically in the context of food services or hospitality. Commission is not a tax; taxes such as sales tax, income tax, and corporate tax are compulsory payments to the government. While commissions and gratuities incentivize and reward the provision of services, taxes are used by governments to raise revenue for public services and are required by law. When it comes to calculating total bills at a restaurant or any retail store, one has to add the applicable sales tax, and often a gratuity or tip, to the original price. To find the total amount payable, including taxes and tips, the formula involves adding the sales tax (a percentage of the total bill) and the tip (usually a discretionary percentage of the total bill before tax) to the original amount.
Calculating the sales tax on a purchase involves multiplying the total cost of the items by the sales tax rate. For example, if the sales tax is 6% and the cost of food is $47.50, you would calculate the sales tax as follows: $47.50 x 0.06 = $2.85. To include a 20% tip on the original cost, you would perform a similar calculation: $47.50 x 0.20 = $9.50. Adding both the sales tax and the tip to the original amount gives you the total bill. In this example, $47.50 + $2.85 + $9.50 = $59.85 would be the total amount paid at the register.