SOLUTION: the new bell laptop computers are on sale for 20% off, and the sales tax rate is 7%. Suppose that two ways can be used to compute the selling price of a laptop: A) Deduct 20% fro

Question 142774: the new bell laptop computers are on sale for 20% off, and the sales tax rate is 7%. Suppose that two ways can be used to compute the selling price of a laptop:
A) Deduct 20% from the regular price and then add 7% to this amount.
B) Add 7% tax to the regular price and then deduct 20% of the total.
Explain your answer.
Answer by jojo14344(1513) (Show Source): You can put this solution on YOUR website!
Well, most (if not all) retailers do the sale procedure as stated in (A).
If your the buyer you might think you're getting cheated of the "sale" price, because the tax is excluded! They put the tax after they discounted the selling price, not discount the item after they put the tax on top of it. Whooo!
Logically, it make sense if you think the business part of it to do as stated in (A). Why?
Simply because the one on sale is the SELLING PRICE, NOT THE TAX WITH IT. Think about it, there was never been a percentage off on a "sales tax" unless you don't pay it at all right?
If your the retail store, you want to do (A) and it's just the legal way.
If your the consumer, of course you want letter (B) --- more deductions eh!
Thank you,
Jojo
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