if a gift is 42.40 including tax,what is the retail price for the gift if the sales tax is 6% ??
Set up a ratio. The cost of the gift including tax is 106% of the cost without tax.
42.40/106 = x/100
Solve for x.
(Note it does not matter whether you use 1.06 or 106 for the percentages in the ratio as long as you are consistent).
1.06x = 42.4
x = 42.4 / 1.06
x = ?
42.40 = X * 1.06
where X is the retail price
X = 42.40/1.06 = $40.00
To find the retail price of the gift, we can subtract the tax amount from the total price.
Step 1: Calculate the tax amount:
The sales tax is 6% of the retail price. So, we need to find 6% of the retail price.
Tax amount = (6/100) * Retail price
Step 2: Determine the retail price:
We are given that the total price, including tax, is $42.40.
So, the total price is equal to the retail price plus the tax amount.
Total price = Retail price + Tax amount
Now, let's solve these equations to find the retail price:
Step 1: Calculate the tax amount:
Tax amount = (6/100) * Retail price
Tax amount = 0.06 * Retail price
Step 2: Determine the retail price:
Total price = Retail price + Tax amount
$42.40 = Retail price + 0.06 * Retail price
Combining like terms:
$42.40 = Retail price * (1 + 0.06)
$42.40 = Retail price * 1.06
Now, divide both sides by 1.06 to isolate the retail price:
Retail price = $42.40 / 1.06
Calculating the retail price:
Retail price = $40
Therefore, the retail price of the gift is $40.