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iVinArrow [24]
3 years ago
14

Assume you have a 5 percent sales tax on the price of a banquet, a 15 percent gratuity charge, and a 5 percent over/under policy

. Explain to your client the cost per person of a banquet selling for $20 as well as the total cost of that banquet assuming a guarantee of 1,000 people. Include in your explanation the over-under policy.
Arts
1 answer:
mamaluj [8]3 years ago
4 0

<u>Answer</u>:

<u>1. $5</u>

<u>2. $5,000</u>

Explanation:

1. For cost per person:

First, sum up all the percentage cost;

Banquet selling price=$20

a. Sales tax=5% of banquet price= 5/100 *20= $1

b. 15 percent gratuity charge=15/100 *20= $3

c. 5 percent over/under policy=5/100 *20=$1

Total cost =$5

2. For guaranteed 1000 persons:

Banquet selling price= $20 *1000= $20,000

a. Sales tax=5% of banquet price= 5/100 *20= $1000

b. 15 percent gratuity charge=15/100 *20= $3000

c. 5 percent over/under policy=5/100 *20=$1000

Total cost =$5000

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