Question

Records show that 19 million firearms were sold in the U.S. during 2020. Assume the average

firearm sold for $500 and the Pittman-Robertson Act collected an 11-percent excise tax. How
much money was raised for conservation from the sale of firearms during 2020? Be sure to show your work.

Answer 1

• $1,045,000,000.

Explanation:

To calculate the amount of money raised for conservation from the sale of firearms during 2020, we'll follow these steps:

Step 1: Calculate the total revenue generated from firearm sales.

Total revenue = Number of firearms sold * Price per firearm

Total revenue = 19,000,000 * $500

Total revenue = $9,500,000,000

Step 2: Calculate the amount of excise tax collected.

Excise tax = Total revenue * Excise tax rate

Excise tax = $9,500,000,000 * 0.11

Excise tax = $1,045,000,000

Therefore, the amount of money raised for conservation from the sale of firearms during 2020, based on the given information, is $1,045,000,000.

Answer 2

$1,045,000,000 = $1.045 billion.

Explanation:

Pittman–Robertson Act

The Pittman–Robertson Act (Federal Aid in Wildlife Restoration Act of 1937) requires an 11% excise tax to be paid on the sale of firearms, ammunition, and archery equipment to be used by state governments to fund wildlife restoration.

Given information:

• Number of firearms sold during 2020 = 19,000,000
• Average selling price of a firearm = $500
• Rate of tax = 11%

The money raised for conservation can be calculated by finding 11% of the number of firearms sold multiplied by the average selling price.

`\begin{aligned}\textsf{Money raised}&=11\% \textsf{ of }19,000,000 * \$500\\\\& = (11)/(100) * 19,000,000 * 500\\\\& = (11* 19,000,000 * 500)/(100) \\\\& = (104,500,000,000)/(100) \\\\& = 1,045,000,000\end{aligned}`

Therefore, the total amount of money raised was $1,045,000,000 ($1.045 billion).