How Discount and Sales Tax Calculations Work
Store markdowns and seasonal sales require two sequential calculations:
- Discounted Subtotal: $\text{Savings} = \text{Original Price} \times \left(\frac{\text{Discount } \%}{100}\right)$ and $\text{Subtotal} = \text{Original Price} - \text{Savings}$.
- Post-Tax Checkout: $\text{Tax Amount} = \text{Subtotal} \times \left(\frac{\text{Tax } \%}{100}\right)$ and $\text{Final Price} = \text{Subtotal} + \text{Tax Amount}$.