Roxy operates a dress shop in Arlington, Virginia. Roxy also ships dresses nationwide upon request. Roxy's Virginia sales are $1,000,000 and out of state sales are $200,000. Assuming that Virginia's sales tax rate is 5 percent, what is Roxy's Virginia sales and use tax liability?

The correct answer is $50.000

Explanation:

Roxy's out of state sales are $200,000, it doesn't pay the "sales tax rate"

Just the common sales that are $1,000,000 (pay the sales tax rate).

Assuming that Virginia's sales tax rate is 5 percent

$1,000,000 x 5% = $50,000

Roxy's Virginia sales and use tax liability is $50,000