Copyright © 2008, The McGraw-Hill Companies, Inc.
- A shoe store advertises a special “We pay the sales tax!” promotion. During this promotion, sales (including tax) totaled
$9,504.95. If the sales tax on shoes is 5.85%, calculate (a) the total sales before tax and (b) the amount of sales tax
that will be due on these sales. - Brad’s Furniture Village had a weekend “no sales tax” sale. Of course, sales tax actually must be paid; since Brad did
not charge it to his customers, the business will have to pay it. The total sales for the weekend amounted to $39,558.03
(including tax). If the sales tax rate is 7^3 ⁄ 4 %, how much will Brad have to pay from this weekend sale?
C. Sales Tax Tables (Optional)
- Use the sales tax table given in the text of this section to fi nd the sales tax on purchases of:
a. $88.35
b. $12.02
c. $35.73
d. $108.50
e. $17.91
D. Grab Bag
- If the sales tax rate is 12.25%, fi nd the total price including tax of a toaster oven priced at $19.95.
- Rene bought a self-powered radio over the Internet for $49.95. Since the merchant was out of state, no sales tax was
charged. The use tax in Rene’s area is 8%. How much use tax is Rene supposed to pay on this purchase? - Jervais went to an appliance store to buy a dishwasher. The sales tax where he lives is 8.25%, but the law in his area
exempts “capital improvements” to a home from sales tax. If he buys the dishwasher and takes it home himself, it is not
considered a “capital improvement” to his house and he will have to pay sales tax. If he has it installed by the dealer, it
is a “capital improvement” and no sales tax will be charged.
The price of the dishwasher is $739.95. The dealer charges $50 for installation. How much will he pay if he installs it
himself? How much will he pay if the dealer installs it for him? - Kyle runs a concession stand at a local baseball stadium. To make things simpler and keep sales moving quickly, he
includes sales tax in all the prices at his stand. Last Saturday, the total receipts at his stand were $845.13. The sales tax
rate is 5.25%. How much of his sales does Kyle need to pay as sales tax? - The sales tax rate where I live is 7.75%. I bought a pair of dress slacks last week and lost the receipt. I want to know the
price of the slacks. My credit card statement shows a charge of $75.37 for this purchase, but that amount includes the
sales tax. What was the price of the slacks? - Suppose that the sales tax on prescription drugs is 3% and on other purchases it is 7%. Lana went to her local pharmacy
and fi lled two prescriptions costing $39.45 and $81.02. She also bought two bottles of contact lens solution for $4.49
each, a paperback novel for $7.95, and a bottle of shampoo for $4.59. Find the total of her purchases including sales tax.
Exercises 9.1 383