Question

Suppose you buy lunch for $16.80 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax? (Do not round intermediate calculations. Round the answers to 2 decimal places.) Multiple Choice

A. $15.46 for lunch and $1.34 for sales tax.

B. $15.56 for lunch and S$1.24 for sales tax

C. $16.80 for lunch and $1.24 for sales tax. 。

D. $16.80 for lunch and $1.34 for sales tax.

Answer 1

Answer:

option (B) $15.56 for lunch and $1.24 for sales tax

Explanation:

Data provided in the question:

Total bill including sales tax = $16.80

Sales tax = 8% = 0.08

Now,

let the price of lunch be 'x'

Therefore,

Price for lunch + sales tax = Total bill including sales tax

⇒ x + (8% of x) = $16.80

or

⇒ x + 0.08x = $16.80

or

⇒ 1.08x = $16.80

or

⇒ x = $15.56

therefore,

The price for the lunch = $15.56

Sales tax = $16.80 - $15.56

= $1.24

Hence,

option (B) $15.56 for lunch and $1.24 for sales tax