Question

A company is having an employee party and spends $200 on food and $65 on decorations. Food is taxed at 3%, and all other retail is taxed at 6%. How much will the company pay in taxes on these items?

Answer 1

The company will pay $13.90 in taxes on these items.

Explanation:

Tax on food:

Food cost = $200

Tax rate for food = 3% or 0.03

Tax on food = $200 × 0.03 = $6

Tax on decorations:

Decorations cost = $65

Tax rate for other retail = 6% or 0.06

Tax on decorations = $65 × 0.06 = $3.90

Total tax:

Total tax = Tax on food + Tax on decorations

Total tax = $6 + $3.90 = $9.90

There seems to be a mistake. I apologize. Let's correct that.

Adding up the taxes from food and decorations:

$6 + $3.90 = $9.90

The company will pay $9.90 in taxes on these items.