A retail manager is calculating the final price for a product that has a pre-tax price of $200. The product is subject to a 5% consumption tax. The manager performs the following calculation: $200 * 0.05 = $10. Why is this calculation incorrect for determining the final price paid by the consumer?
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A retail manager is calculating the final price for a product that has a pre-tax price of $200. The product is subject to a 5% consumption tax. The manager performs the following calculation: $200 * 0.05 = $10. Why is this calculation incorrect for determining the final price paid by the consumer?
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