Question

Julie's Boutique has total receipts for the month of $30,660 including sales taxes. If the sales tax rate is 5%, what are Julie's sales for the month? Question 10 options: A) $32,193 B) $29,200 C) It cannot be determined. D) $29,127

Answer 1

Answer:

The correct answer is B) $29,200

Explanation:

Px is total receipts for the month including sales taxes

Px' is total receipts for the month not  including sales taxes

t=is tax rate

Taxes is  Px' *tax rate

Px=Px' + taxes

Px=Px' + Px' *tax rate

Px=Px'*(1+tax rate)

We need to know Px'

So,  Px'=Px/(1+tax rate)

Replacing,  

Px'=30,660/1,05=$29,200