Question

Union Apparel has sales including sales taxes for the month of $552,000. If the sales tax rate is 6%, what are Union Apparel's sales for the month? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

Answer 1

Answer:

Union Apparel's sales for the month is $520,000

Explanation:

For computing the monthly sales excluding taxes, the calculation is shown below:

= Sales including sales taxes × Sales ÷ sales with sales tax

where,

1 is the sales value

And, sales value with tax equals to

= 1 + 6 % = 1 + 0.06 = 1.06

Now, put these values to the above formula

So, the value would be equal to

= $552,000 ×1 ÷ 1.06

= $520,000

Hence, Union Apparel's sales for the month is $520,000