4
QuizMultiple Choice

Tax and Gratuities

Question 4 • SEPHS - BUS 240 - Personal Finance (Summer)

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.

Answer
A
A
B
B
C
C
D
D
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