Answer:
It does not matter whether the tax is calculated on each separate item or the total cost.
Step-by-step explanation:
Lets check both the conditions by taking 2 items.
Lets suppose a person buys laundry detergent for $4.50 and flower bouquet for $5.25
Condition 1: If 5% tax is deducted separately on both items:
Cost of laundry detergent becomes after tax = [tex]0.05\times4.50=0.225[/tex]
= [tex]4.50-0.225=4.275[/tex]
Cost of flower bouquet becomes = [tex]0.05\times5.25=0.2625[/tex]
= [tex]5.25-0.2625=4.9875[/tex]
So, total tax deducted is = [tex]0.225+0.2625[/tex]= $0.4875
Condition 2: If tax is deducted on whole amount.
Cost of both the items = [tex]4.50+5.25[/tex] =$9.75
5% tax on 9.75 is = [tex]0.05\times9.75[/tex] = $0.4875
Hence, we can see that in both the conditions the tax is same that is $0.4875
So, it does not matter whether the tax is calculated on each separate item or the total cost. The tax remains the same.
