How can sales tax alter the size of the tip you leave at a restaurant?




a.

A tip of a given percentage (such as a 20% tip) will be larger if calculated after tax than if calculated before tax.


b.

The tip becomes part of the bill as a whole, so you have to increase the sales tax by a corresponding amount.


c.

You do not have to double-calculate a percentage on any purchases, so you should pay for tax or a tip but not both.


d.

A standard tip is 15% to 20% of the sales tax.

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hyouka
a.

A tip of a given percentage (such as a 20% tip) will be larger if calculated after tax than if calculated before tax.

The sales tax can affect the amount that you tip in that a. A tip of a given percentage (such as a 20% tip) will be larger if calculated after tax than if calculated before tax.

When you give a tip after tax as a percentage, you would be taking a percentage of a larger amount which would mean that the tip would be larger as well.

For instance, assume you wanted to give a 10% tip to a meal that cost $40 with a tax of $5. The tip before tax is:

= 10% x 40

= $4.00

The tip after tax is:

= 10% x (40 + 5)

= $4.50

In conclusion, giving a tip as a percentage after tax increases the tip.

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