Practice Skills in Calculating Sales Tax for a Manufacturing Firm
How can we calculate each quarter's sales tax and the total sales tax for the year 2021 for a manufacturing firm with quarterly sales of 200, 300, 400, and 500 million?
Please provide a detailed explanation with three potential sales tax rates (6%, 8%, and 10%) and present the final outputs in a table format.
Calculation of Sales Tax for a Manufacturing Firm
To calculate each quarter's sales tax for a manufacturing firm with quarterly sales of 200, 300, 400, and 500 million in 2021, we will use the sales tax rates of 6%, 8%, and 10%.
Below is the calculation for each quarter's sales tax:
- Quarter 1 (Sales: 200 million): Sales tax = 200 million x 6% = 12 million
- Quarter 2 (Sales: 300 million): Sales tax = 300 million x 6% = 18 million
- Quarter 3 (Sales: 400 million): Sales tax = 400 million x 6% = 24 million
- Quarter 4 (Sales: 500 million): Sales tax = 500 million x 6% = 30 million
After calculating each quarter's sales tax, we can sum up the total sales tax for the year 2021 by adding the sales tax from each quarter. The table below shows the breakdown and total sales tax for the year:
Total Sales Tax Calculation Table
| Quarter | Sales (million) | Sales Tax (6%) | Sales Tax (8%) | Sales Tax (10%) |
|---|---|---|---|---|
| 1 | 200 | 12 | 16 | 20 |
| 2 | 300 | 18 | 24 | 30 |
| 3 | 400 | 24 | 32 | 40 |
| 4 | 500 | 30 | 40 | 50 |
| Total Sales Tax | 84 million | 112 million | 140 million | |
By using the sales tax rates of 6%, 8%, and 10%, we have calculated each quarter's sales tax and the total sales tax for the year 2021 for the manufacturing firm. It is essential for businesses to accurately calculate sales tax to ensure compliance with government regulations and financial transparency.