Question

For its fleet of trucks, Overland Transport, Inc., purchased 580 tires rated at 50 pounds each. The tires had a retail price of $85 each. The sales tax is 4.5%, and the federal excise tax is $0.15 per pound. What are the amount of sales tax per tire and the total sales tax

Answer 1

Answer:

The amount of sales tax per tire = $3.825

The total sales tax = $2,218.50.

Explanation:

These can be be calculated as follows:

Sales tax per tire = Retail price per tire * Sales tax rate = $85 * 4.5% = $3.825

Total sales tax = Number of tire purchased * Sales tax per tire = 580 * $3.825 = $2,218.50

Therefore, the amount of sales tax per tire is $3.825 and the total sales tax is $2,218.50.