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Tax and Gratuities Answers

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The Harringtons go to a restaurant for lunch and their bill is $86.20. After 6.5% tax and tip, they pay a total of $100. If the Harringtons were exceptionally pleased with their service, decide if their tip reflected this. Explain your reasoning.

Answer:

The tip did not reflect exceptionally pleased service. After subtracting the $5.60 tax from the $13.80 added to the bill, the tip was about $8.20, or 9.5% of the original bill—less than the customary 15%–20%.

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