Preforming+Calculations+18237

__Performing GST calculations__ GST stands for Goods and Services Tax. GST is a tax on most goods and services in NZ, most imported goods, and certain imported services. Taxable goods and services include · Tangible goods you provide in return for payment such as products you would sell in a retail outlet · Services that you provide in return for payment such as a tour guide service. ** To add GST you need to add 15%. So if you needed to add GST to $455.67 then, using the calculator, you need first to find out what 15% of $455.67 is. You need to press the following keys: 455.67 x 15% = The number on your calculator would be: $68.35 (rounding). So adding $68.35 to the original amount of $455.67 we get $524.02 **
 * 1) **__ To add GST __**

**__ (Inland Revenue Department formula for calculating GST content) __** **Note: ** Multiplying a sales or purchases amount by 3 then dividing by 23 enables you to find out the GST amount. Subtract this amount to get the GST exclusive amount. [] __Percentages / Commission__ Commission is a fee paid to an agent for providing a service. It is usually worked out as a percentage of the total amount of business transacted. There are two terms you need to know · Gross figure: that is the total amount including the commission payable to the agent · Net figure: this is the amount excluding the agents commission There are two main types of commission calculations you need to know about · Calculating commission from a gross figure · Calculating commission based on a net figure __Commission from a gross figure__ You can work commission from a gross figure in the same way that you worked out the GST amount. You need to key in the commission inclusive figure (the gross amount), then press the times key then the amount of the commission. For example, if you needed to work out 3% commission on a gross figure of $66.50 then you would press the following keys 66.50 x 3% Which will give you the $2.00 (rounding) so · The gross figure is %66.50 · Your commission is $2.00 (3% of gross figure) · The net figure is $64.5 (gross figure – commission = net figure) __Commission based on a net figure__ Sometimes you might have to calculate commission based on a net figure. For example, a retail agent has sold a two bedroom suite at your hotel. Your net rate to the agent is $180.00 and you pay the agent 10% commission. You now need to add the commission onto the net amount to get the total that the customer will be charged. In order to work this out you press the following keys: 180.00 x 10 % = You should get $18.00. The charge for customers will be $180.00 + $18.00 = $198.00 Peter receives 13% commission per booking on Combo 1. He gets 10% commission on bookings for individual activities. __Using a calculator,__ find out how much commission Peter makes from the Smith’s bookings If they go with this option Combo Price 1 $285.00 x 13 % Plus massage package $158.00 x 10 % Total Optional excursions are a common service provided by most tour companies. It is collaboration by both the tour company and operators. The tour company will research and choose an operator that has a good product and sound health and safety regulations in place. In return the operators often offer a commission to the tour company for providing constant business. The commission rate is generally around 12 – 15% for the tour company, who will then pay the tour director approximately 3% of this, because they are the front line person who is drumming up the business. This puts a responsibility on the tour company and the tour director to provide quality excursions so the passengers are satisfied and feel they received good value for money. Many of these excursions are weather dependant and the tour director needs to prepare passengers for the fact that they may not be able to do all the activities involved. Work out the commission both the tour company (15%) and Holly (3% of the 15%) will make Tour company $2719.00 x 15% = Holly (3% of the 15%) __Foreign Exchange__ Foreign exchange is the term used when you exchange money in one country’s currency for another. For example, you might change NZ dollars for United Kingdom Pounds sterlings, or you might change Australian dollars for Japanese Yen. In order to exchange the amounts you need to know the exchange rates. Numerous factors that go on in the world such as changing economies, market conditions and so on, mean exchange rates fluctuate from day to day, so the exchange rate for a currency today might be different tomorrow. Usually these fluctuations are minimal, but even these small differences can make a big difference for an overall sum. For this reason, many people and organisations buy and sell currency in order to make a profit. The easiest way to find exchange rates is to go to a bank where the latest figures will be advertised. When it comes to exchanging foreign currency, the following is an easy way to remember whether you should multiply or divide New Zealand dollars (NZD) into Foreign Exchange (FX) NZD →FX (x = Multiply) Foreign Exchange (FX) into New Zealand dollars (NZD) FX → NZD (d ÷ divide) __NZD into another currency__ In order to calculate how much foreign currency you would get from NZ currency, you need to multiply the NZD amount by the exchange rate for the foreign currency
 * Currency || Code || Exchange Rate ||
 * Australian dollars || AUD || 0.7939 ||
 * Euro || EUR || 0.4919 ||
 * United States dollars || USD || 0.7799 ||

So in order to convert NZD $180.00 to any other currencies we need to multiply the amount by the exchange rates NZD $180.00 x 0.7939 = AUD 142.9 (rounding) NZD $180.00 x 0.4919 = EUR 88.54 (rounding) NZD $180.00 x 0.7799 = USD 140.38 (rounding) __Foreign currency to NZD__ In order to calculate how much NZD currency you would get from foreign currency, you need to divide the foreign amount by the exchange rate for the foreign currency So let’s say you have AUD 586.50, EUR 78.00 and USD 56.60 and you want to convert all this to NZD AUD 586.5 ÷ 0.7939 = NZD 738.76 (rounding) EUR 78.00 ÷ 0.4919 = NZD 158.57 (rounding) USD 56.60 ÷ 0.7799 = NZD 72.57 (rounding) So altogether you’d have $969.9 (rounding) in NZD

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