Final answer:
The selling price of the item before tax is P5600.00, calculated by dividing the sales tax (P224.00) by the tax rate (4%). The total cost paid by the customer, including sales tax, is P5824.00.
Step-by-step explanation:
To find the selling price of the item before tax, we divide the sales tax amount by the tax rate as a decimal. In this case, the sales tax is P224.00 and the tax rate is 4%, which can be expressed as 0.04 in decimal form.
To calculate the selling price (SP) of the item, we use the formula:
SP = Sales Tax ÷ Tax Rate
SP = P224.00 ÷ 0.04
SP = P5600.00
Therefore, the selling price of the item is P5600.00.
To calculate the total cost paid by the customer, including the sales tax, we simply add the sales tax to the selling price:
Total Cost = Selling Price + Sales Tax
Total Cost = P5600.00 + P224.00
Total Cost = P5824.00
So, the total amount paid by the customer, including sales tax, is P5824.00.