For its fleet of trucks, Overland Transport, Inc., purchased 580 tires rated at 50 pounds each. The tires had a retail price of $85 each. The sales tax in 4.5%, and the federal excise tax is $0.15 per pound.
A. What are the amount of sales tax per tire and the total sales tax?
B. What are the amount of federal excise tax per tire and the total excise tax?
C. What is the total purchase price of the tires>
A 85*.045 per tire
multiply that by 580 tires for total
B .15*50 per tire
*580 for total
C add $85 and per-tire taxes for total price per tire. *580 for total price.
what is the answer i don't know
what, you can't use a calculator to find that
A: 85*.045 = $3.825 per tire sales tax
3.825 * 580 = $2218.50 total sales tax
??
now do the same for B
Sales tax = Selling price × Sales tax rate
Excise tax = Selling price × Excise tax rate
Total purchase price = Selling price + Sales tax + Excise tax
To get the total you just multiply the individual rate by 580 :)
To find the answers to parts A, B, and C, we will break down each calculation step by step.
A. Amount of sales tax per tire and total sales tax:
1. First, calculate the sales tax per tire by multiplying the retail price of the tire ($85) by the sales tax rate (4.5% or 0.045):
Sales tax per tire = $85 * 0.045 = $3.825
2. Next, to find the total sales tax for all the tires, multiply the sales tax per tire by the total number of tires (580):
Total sales tax = $3.825 * 580 = $2,215.50
Therefore, the amount of sales tax per tire is $3.825, and the total sales tax is $2,215.50.
B. Amount of federal excise tax per tire and total excise tax:
1. The federal excise tax is charged per pound of each tire. So, first, we need to calculate the weight of a single tire by multiplying its weight rating (50 pounds) by the total number of tires (580):
Weight of all tires = 580 tires * 50 pounds = 29,000 pounds
2. The federal excise tax per tire is calculated by multiplying the excise tax rate by the weight of each tire:
Excise tax per tire = $0.15/pound * 50 pounds = $7.50
3. Finally, we calculate the total excise tax by multiplying the excise tax per tire by the total number of tires:
Total excise tax = $7.50 * 580 = $4,350
Therefore, the amount of federal excise tax per tire is $7.50, and the total excise tax is $4,350.
C. Total purchase price of the tires:
1. The purchase price per tire can be found by adding the retail price and the sales tax per tire:
Purchase price per tire = $85 + $3.825 = $88.825
2. Finally, we calculate the total purchase price by multiplying the purchase price per tire by the total number of tires:
Total purchase price = $88.825 * 580 = $51,401.50
Thus, the total purchase price of the tires is $51,401.50.