Question

Blossom's salon has total receipts for the month of $53,607, including sales taxes. If the sales tax rate is 7%, what are Blossom's sales for the month?

a. $50,100.00
b. $49,855.71
c. $57,360.29
d. It cannot be determined.

Answer 1

To find Blossom's pre-tax sales for the month, divide the total receipts by 1.07, considering the 7% sales tax. The final pre-tax sales are $50,100.00.

Step-by-step explanation:

To calculate Blossom's salon sales for the month before tax, we need to isolate the sales amount from the total receipts including sales tax. Given that the total receipts are $53,607 including a 7% sales tax, we can use the following formula to calculate the pre-tax sales:

Let S be the sales before tax.

Total receipts = Sales + (Sales * Sales Tax Rate)
$53,607 = S + (S * 0.07)
$53,607 = S * (1 + 0.07)
$53,607 = S * 1.07

To find the sales before tax, divide the total receipts by 1.07:
S = $53,607 / 1.07
S = $50,100.00

Therefore, the final answer for Blossom's sales for the month before tax is $50,100.00.