Solve the Problem. -Inclusive of a 6.8% Sales Tax, a Diamond Ring Sold

question 196

Multiple Choice

Solve the problem.
-Inclusive of a 6.8% sales tax, a diamond ring sold for $2029.20. Find the price of the ring before the tax was added. (Round to the nearest cent, if necessary.)

• A)$1891.21
• B)$2167.19
• C)$137.99
• D)$1900

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Definitions:

Fixed Cost

Costs that do not change with the level of output produced, such as rent or salaries, remaining constant regardless of business activity levels.

Total Revenue

The total amount of money generated by a firm or entity from its business activities, calculated by multiplying the price by the quantity sold.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.