The formula for calculating the selling price (or retail price) of an item when the Total Purchase Price is known is as follows:
? $$\text { Selling Price } = \frac { \text { Total Purchase Price } } { 100 \% - \text { Sales Tax Rate } }$$ ?

Question

Quizplus · Accepted Answer

The formula provided is incorrect because it does not account for the markup or profit margin. The selling price should include both the total purchase price and any additional markup or profit margin, not just the sales tax.

The Formula for Calculating the Selling Price (Or Retail Price) Selling Price = Total Purchase Price 100%− Sales Tax Rate \text { Selling Price } = \frac { \text { Total Purchase Price } } { 100 \% - \text { Sales Tax Rate } } Selling Price =100%− Sales Tax Rate Total Purchase Price ​

The Formula for Calculating the Selling Price (Or Retail Price) $\text { Selling Price } = \frac { \text { Total Purchase Price } } { 100 \% - \text { Sales Tax Rate } }$