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PILU LI IL PUUD 54. TANNING As part of the Affordable Care Act of 2009, indoor tanning services are subject to a federal exci
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Answer #1

If a customer is paying $ 25 inclusive of tax, then tax rate would be 2.50/22.50*100 = 11.11%

However, if the price of tanning of $ 25 is the parlors fees and tax is not included then tax rate is $ 2.50/25 = 10%

By the wording of the question, it will be the first scenario, 11.11% . Keep the formula in mind, tax paid / price exclusive of tax x 100.

Hope this helps.

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