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Calculating a Tip

Calculating a Tip. How can people express their likes/dislikes after eating out at a restaurant?. TIP – acronym for “To Insure Promptness” . Can you identify three situations that might require a person to leave a tip?. How do people decide how much to leave for a tip at a restaurant? .

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Calculating a Tip

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  1. Calculating a Tip How can people express their likes/dislikes after eating out at a restaurant? TIP – acronym for “To Insure Promptness”

  2. Can you identify three situations that might require a person to leave a tip?

  3. How do people decide how much to leave for a tip at a restaurant? • 10%: Poor Service • 15%: Average Service • 18%: “Special Service”-Added onto bill for parties of 6+ • 20%: Excellent Service

  4. To calculate any tip: • Step 1: Determine the percent amount of the tip, which is usually between 15%-20% of the bill • Step 2: Change the percent (%) to a decimal • Remove the percent sign,move the decimal point two places to the left • Example: 15% = .15

  5. Step 3: Calculate the tip using the following formula: Bill x Decimal = Tip • Example: $21.50 (bill) x .15 (tip) = $3.225 • Step 4: Round the tip to the nearest cent • Example: $3.225 ≈ $3.23 (calculated tip)

  6. A guest’s restaurant bill was $48.59. They wanted to leave a 15% gratuity for good service. Calculate the tip. • Step 1: Determine the percent amount of the tip • Example: 15% (stated in problem) • Step 2: Change the percent (%) to a decimal • Remove the percent sign and move the decimal point two places to the left • Example: 15% = .15 • Step 3: Calculate the tip using the following formula - bill x decimal = tip • Example: $48.59 (bill) x .15 = $7.2885 • Step 4: Round the tip to the nearest cent • Example: $7.2885 = $7.29 (calculated tip)

  7. How do you estimate a tip? • Step 1: Round the bill to the nearest whole number; either round up or round down • Example: $48.59 (bill) = $49.00 • Step 2: Estimate the tip using the following guidelines: • To find a 10% tip, move the decimal point in the bill one space to the left • Example: $49.00 = $4.90

  8. Example: • The total cost for lunch for two people at Red Lobster was $18.89. • Calculate how much should be left for a 20% tip.

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