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First you calculate the amount of the tax on the item. Then you add together the original cost of the item and the tax.
The discount must be calculated first to get the base price of the item, then the tax percentage would be taken into consideration, otherwise you would be charging additional tax on an item which should be discounted in the first place. If you were to calculate tax first then the discount price, your total would be incorrect.
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If available, offer them a raincheck.
The first product to have a bar code included was a packet of Wrigley's Gum.