3-q22

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3-q22

by stubbornp » Sun Oct 12, 2008 10:59 am
22. Last Tuesday a trucker paid $155.76, including 10 percent state and federal taxes, for diesel fuel. What was the price per gallon for the fuel if the taxes are excluded?
(1) The trucker paid $0.118 per gallon in state and federal taxes on the fuel last Tuesday.
(2) The trucker purchased 120 gallons of the fuel last Tuesday.

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Re: 3-q22

by parallel_chase » Sun Oct 12, 2008 1:24 pm
stubbornp wrote:22. Last Tuesday a trucker paid $155.76, including 10 percent state and federal taxes, for diesel fuel. What was the price per gallon for the fuel if the taxes are excluded?
(1) The trucker paid $0.118 per gallon in state and federal taxes on the fuel last Tuesday.
(2) The trucker purchased 120 gallons of the fuel last Tuesday.
Question stem:
lets x be the cost of all the fuel excluding state and federal tax
1.1x = 155.76
x = 155.76/1.1

10% x = 10% (155.76/1.1) = total federal and state tax paid

Statement I
0.118 per gallon of tax paid.
10%x / .118 = no. of gallons of fuel purchases
x / no. of gallons = per gallon cost excluding the sales tax.

Sufficient

Statement II
120 gallons of fuel purchased.
x/120 = per gallon cost excluding the sales tax.

Sufficient.

Hence D.

OA?

This one was little tricky.
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by stubbornp » Sun Oct 12, 2008 7:06 pm
oa D

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by pillager » Fri May 14, 2010 1:57 am
Hi
The question is "what was the price per gallon for the fuel if the taxes are excluded?" But nowhere in the question it is mentioned that there are only two taxes... What if there is another tax which is not mentioned in the statement?

I think it should be E as question never said that there are only two taxes....

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by ballubalraj » Fri May 14, 2010 3:23 am
I guess it can be assumed that there were only two taxes, until stated otherwise.

Any experts to comment on this topic, i.e., whether to assume that there were only state and fed taxes or not?

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by pillager » Sun May 16, 2010 7:16 pm
experts.. can you please help for this question