How To Calculate The Total Tax Revenue

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How to calculate the total tax revenue. Assuming a 40 tax rate the sales revenue should be reflected in the analysis by a. Taxable earning gross total income total exemptions total deductions. Calculate the amount of tax revenue collected by the government and the distribution of tax payments between buyers and sellers. Units are selling at 20 per unit and 400 sell.

3 750 1 500 625 4 000 750 10 625 total revenue revenue is an important figure to obtain not so much because it s inherently symbolic of your profits but more because it s used to calculate so many other more telling figures. Here s how you ll calculate total revenue for forecasting purposes. Price is the price each unit sells for. Formula how to calculate total revenue.

What is the total sales revenue that they are collecting. Take for example a leather craftsman who sells boots for 100 per pair. Total revenue price x quantity. Firstly gross sales have to be confirmed by the sales department.

The last step is to add the totals together to get the total revenue. If a boutique priced a blouse at 50 and it sold seven that puts total gross revenue for that product at 350. Next the cost of goods sold is determined by the accounts department. Put simply calculating revenue means multiplying the price of each product by the total number of units sold.

Quantity is the number of units sold. In order to file your income tax return you first need to collect all the information required to file it the next important step is to compute your total taxable income. Total gross revenue does not include any taxes paid for an item. For example sarah works part time at online co earning 32 000 per year and also works part time at offline co earning 21 000 per year.

If he regularly sells 50 pairs per month his total revenue is 5 000 100 x 50 5 000. After this final tax payable or refundable is calculated by applying the applicable tax rates in force and then deducting taxes already paid by way of tds tcs or advance tax from the tax due amount arrived at. For instance in 2013 the state of new jersey collected a total of 8 235 billion in sales and use tax revenues which was approximately 30 5 percent of the 27 billion the state government collected from all taxes and fees for the same period. This is calculated before any discounts are applied.

Total revenue quantity sold x price. Total revenue is 8 000. Assume that the tax on beer is 20 per unit a unit is a carton of drinks assume the demand and supply functions for cartons of beers per week are. The taxable income formula for an organization can be derived by using the following five steps.