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Taxes Computation is wrong


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Hi,

 

I cannot make work on the taxes. Here it is:

 

I buy Stuffed Squid that cost $40 and the shipping fee is $50, but when I apply the 12% TAX it computes including the shipping fee ($40 + $50) x 0.12 which is wrong. How can I make the computation to be ($40 x 0.12) + $50 Shipping fee?

 

 

Thanks,

John

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