Quandaries
and Queries
Hi. I am not a student, I actually own a business. I have been looking through an old algebra book and cannot come up with a formula for the problem I have. I hope you can/will help me.
I know my total sales for the month, which includes sales tax. How do I get to the sales dollars before the sales tax?
Here are the totals:
Total sales with sales tax $17,856.64
Sales Tax rate is 6.5%
How do I calculate the sales total before tax?
Thank you,
Lynda
Hi Lynda,
If you knew the sales before the tax and you wanted to calculate the sales including tax then you would calculate
sales including tax = (sales before tax)
1.065
That is
$17,856.64 = (sales before tax)
Thus
$17,856.64/1.065 = sales before tax
Hence
sales before tax = $16766.80
Penny