Roxy operates a dress shop in arlington, virginia. roxy also ships dresses nationwide upon request. roxy's virginia sales are $1,000,000 and out of state sales are $200,000. assuming that virginia's sales tax rate is 5 percent, what is roxy's virginia sales and use tax liability?

The correct answer is $50.000

Explanation:

Roxy´s out of state sales are $200,000, it doesn´t pay the "sales tax rate"

Just the common sales that are $1,000,000 (pay the sales tax rate).

Assuming that Virginia's sales tax rate is 5 percent

$1,000,000 x 5%= $50,000

Roxy's Virginia sales and use tax liability is $50,000