economics
posted by sheela .
income total spending
$10,000 $10,000
20,000 18,000
50,000 35,000
100,000 60,000
If a sales tax of ten percent is levied on all purchases, calculate
A. amoust of sales tax paid at each income level and
B. the fraction f income paid in taxes at each income level
Let X be pretax spending. For a total spending of 10000 = 1.1*X. Solve for X. X=9090.90 Meaning sales tax must be 909.1. Repeat for all other total spending levels.
Respond to this Question
Similar Questions

Economics
The marginal tax rate is defined as the extra taxes paid on additional income divided by the increase in income. Calculate the marginal tax rate for the proportional tax system as income rises from $50,000 to $100,000. Calculate the … 
Economics
The marginal tax rate is defined as the extra taxes paid on additional income divided by the increase in income. Calculate the marginal tax rate for the proportional tax system as income rises from $50,000 to $100,000. Calculate the … 
Account
Here is my question, please help!!! 5. Assume that Z company's chief financial officer gave you the following information: net sales, $3,800,000; cost of goods sold, $2,100,000; extraordinary gain (net of income taxes of of $7,000), … 
finance (net income)
If a firm has a breakeven point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will the firm's net income be at sales of 30,000 units? 
accounting
Assets Cash (Net Effect) $35,000 20,000 +15,000 A/R 33,000 14,000 +19,000 Merchandise Inventory 27,000 20,000 +7,000 PPE 60,000 78,000 18,000 Accumulated Depreciation (29,000) (24,000) ? 
computer subject
SPECS:construct a flowchart that shall producethe corresponding sales commission amount of each sales income enterd. LEGND: commission table(per month) sales income bracket commission rate above $/100,000 15% $/75,000.01$/1000,000 … 
healthcare fiancare
HINT: 6% X $1,000,000 – {20% X ($1,000,000 – (6% X $1,000,000))} = 6% X $1,000,000 – {20% X ($1,000,000  $60,000))}= 6% X $1,000,000  {20% X $940,000}= 6% X $1,000,000  $188,000 = $60,000  $ 188,000= $128,000 A) The interst … 
accountingincome tax
During the current year, Deborah Baronne, a single individual, paid the following amounts: Federal income tax $10,000 State income tax $4,000 Real estate taxes on land $1,400 State sales tax $2,000 
math
The data set represents the income levels of the members of a country club. Estimate the probability that a randomly selected member earns at least $98,000. 112,000 126,000 90,000 133,000 94,000 112,000 98,000 82,000 147,000 182,000 … 
statistics
The data set represents the income levels of the members of a country club. Estimate the probability that a randomly selected member earns at least $98,000. 112,000 126,000 90,000 133,000 94,000 112,000 98,000 82,000 147,000 182,000 …