You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 5%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $266,250. (a) How much of this revenue was sales (in $) and how much was sales tax (in $)? sales$ sales tax$ (b) How much sales tax (in $) should be sent to the city? $ (c) How much sales tax (in $) should be sent to the state?
You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 5%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $266,250. (a) How much of this revenue was sales (in $) and how much was sales tax (in $)? sales$ sales tax$ (b) How much sales tax (in $) should be sent to the city? $ (c) How much sales tax (in $) should be sent to the state?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are the owner of Caché, a chain of women's clothing boutiques. Your state has a sales tax of 5%, and your city has an additional sales tax of 1.5%. Each quarter you are responsible for making these tax deposits to the city and state. Last quarter your stores had total revenue, including sales tax, of $266,250.
(a)
How much of this revenue was sales (in $) and how much was sales tax (in $)?
sales$ sales tax$
(b)
How much sales tax (in $) should be sent to the city?
$
(c)
How much sales tax (in $) should be sent to the state?
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