Tax and Service Charge Included
A customer wants to book an event at a property, including a quantity of sleeping rooms. A sales representative quotes a rate that includes tax and service charge. The specific rate, charges, and options are shown in the following table.
| Charge or Option | Value |
|---|---|
|
Room Rate |
100.00 |
|
Tax |
10 percent |
|
Service Charge |
5.00 |
|
Tax Inclusive |
True |
|
Service Charge Inclusive |
True |
In this scenario, the calculation returns the values shown in the following table.
| Category | Calculation | Amount |
|---|---|---|
|
Revenue |
Ten-elevenths of the sum of room rate minus service charge |
86.36 |
|
Tax |
One-eleventh of the sum of room rate minus service charge (10 percent of revenue) |
8.64 |
|
Service Charge |
5.00 |
5.00 |