KagamineLen
Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

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.

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.