Final answer:
To calculate sales tax for a special order, convert the tax rate to a decimal and multiply by the total cost, then add the tax amount to the original cost to find the total amount payable.
Step-by-step explanation:
When computing the sales tax for the sale of a special order, the process is straightforward. To determine the sales tax amount, you first convert the sales tax rate from a percentage to a decimal. For example, a 10% tax rate would become 0.10. Then, you multiply this decimal by the total cost of the items to find the sales tax amount.
If you have multiple items, add their costs together to get the total cost before calculating the tax. Once you have the sales tax figure, you add it to the original cost of the items to get the total amount that needs to be paid.
Example Calculation
Let's assume you purchased items totaling $150.00 and the sales tax rate is 10%. You would calculate the sales tax like this:
$150.00 x 0.10 = $15.00 in sales tax
The total amount with the sales tax included would then be:
$150.00 + $15.00 = $165.00
Sales taxes are typically regressive, meaning that they can take a larger percentage of income from lower-income individuals since they spend a higher proportion of their income on taxable goods.