Rebekah owns a local cupcake bakery. In 2020, she earned $200,000 from sales. Rebekah had a cost of goods sold of $50,000. Sarah owns a local brewery. In 2020, the brewery earned $200,000. Sarah's cost of goods sold was $200,000. Suppose that the state of Roadrunner has a flat tax rate with no deductions for expenses or costs. Roadrunner taxes its citizens on 20% of gross amounts earned.

What is the tax for each of the citizens above? Rebekah's tax owed is: Sarah's tax owed is: Add up Rebekah's expenses. Does she have enough money to pay for her tax bill? Now, add up Sarah's expenses. Does she have enough money to pay for her tax bill?