Asked by Stone Jamison on Jul 20, 2024
Verified
Mast General Store has total receipts for the month of $45990 including sales taxes. If the sales tax rate is 5% what are Mast's sales for the month?
A) $43691
B) $43800
C) $48290
D) It cannot be determined.
Sales Taxes
Taxes imposed by governments on the sale of goods and services, usually calculated as a percentage of the sale price.
- Compute the amount of sales tax due to the taxation authority based on the aggregate sales.
Verified Answer
JB
Jimmy BoeroJul 20, 2024
Final Answer :
B
Explanation :
Let's assume the total sales for the month to be x.
So, the sales tax amount would be 5% of x = 0.05x.
And, the total receipts would be x + 0.05x = 1.05x.
We know that the total receipts for the month are $45990.
Hence, 1.05x = $45990
Or, x = $43800. Therefore, the sales for the month are $43800.
Hence, the correct choice is B.
So, the sales tax amount would be 5% of x = 0.05x.
And, the total receipts would be x + 0.05x = 1.05x.
We know that the total receipts for the month are $45990.
Hence, 1.05x = $45990
Or, x = $43800. Therefore, the sales for the month are $43800.
Hence, the correct choice is B.
Learning Objectives
- Compute the amount of sales tax due to the taxation authority based on the aggregate sales.