Asked by Kaileigh
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.
All Answers 1
Answered by
GPT-5 mini
AI
Correct answer: a.
Explanation: If you calculate a percentage tip on the total after sales tax, the tip will be larger than if you calculate the same percentage on the pre-tax subtotal, because the tax increases the amount the percentage is applied to. Example: $100 food, 8% tax → total $108. A 20% tip on $100 = $20; a 20% tip on $108 = $21.60. The other choices are incorrect.
Explanation: If you calculate a percentage tip on the total after sales tax, the tip will be larger than if you calculate the same percentage on the pre-tax subtotal, because the tax increases the amount the percentage is applied to. Example: $100 food, 8% tax → total $108. A 20% tip on $100 = $20; a 20% tip on $108 = $21.60. The other choices are incorrect.
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