Question

The Leather Depot buys a coat from a supplier for $90 wholesale and marks up the price by 40%. If the retail price is $134.82, what is the sales tax?

Answer 1

Sales Tax is `$8.82 (7%)`

Explanation:

Buying price of coat is `P= $90.00`

Marked price of coat is `M= 90.00*((100+40)/100)= $126.00`

Retail price (R) = Marked Price `(M=$126 ) +` Sales Tax(ST) `= 134.82`
`ST= 134.82-126=$8.82 :. ST% = 8.82/126*100 =7.0%` [Ans]