Question & Answer: A business's total sales, including a 5% tax, were $23,152.81. Calculate the (a) actual sales and (b)…..

A business’s total sales, including a 5% tax, were $23,152.81. Calculate the (a) actual sales and (b) sales tax liability.

Expert Answer

Let actual sales = 100

Then sales tax = 100 * 5% = 5

Sales including sales tax = 100 + 5 = 105

(a) Actual sales = 23152.81 * 100 / 105 = 22050.30

(b) Sales tax = 23152.81 * 5/105 = 1102.51

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