KagamineLen
Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

A grocery store receipt shows 5% state tax due on laundry detergent and a flower bouquet. Does it matter whether the tax is calculated on each separate item or the total cost? Explain.

Sagot :

If the receipt shows both items it does matter, if you simply calculate each its like your putting 10% tax on it.

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.

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.