A state gets its money from a state lottery, a property tax, a sales tax of 5%, and an excise tax. This year it projects that it will receive $32 million from the state lottery, $40 million from the property tax, and $10 million from the excise tax. If the state needs $100 million to cover its expenses, how many dollars worth of taxable items must be purchased in the state this year for the state to break even?

Question

Zoey Meza

Mathematics

27 July, 02:28

A state gets its money from a state lottery, a property tax, a sales tax of 5%, and an excise tax. This year it projects that it will receive $32 million from the state lottery, $40 million from the property tax, and $10 million from the excise tax. If the state needs $100 million to cover its expenses, how many dollars worth of taxable items must be purchased in the state this year for the state to break even?

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Zoie Reed · Answer 1

For the state to break even, its expenses must equal its revenue

expenses = 100 million

income = 32 mill + 40 million + 10 million = 82 million + 0.05x

100,000,000 = 82,000,000 + 0.05x ... with x being taxable income

100,000,000 - 82,000,000 = 0.05x

18,000,000 = 0.05x

18,000,000 / 0.05 = x

360,000,000 = x <===