Rusty Co. sells two products: X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows:
Product Unit Selling Price Unit Variable Cost Unit Contribution Margin
X $110 $70 $40
Y 70 50 20
Required:
1. For break-even analysis, the unit contribution margin of E was
a.$60.00
b.$22.50
c.$20.00
d.$40.00

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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