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A not-for profit nursing home has total expenses of $20 million. Sales tax in the state is 7%. Expenses are broken down into salaries ($12 million), supplies ($6 million), and pharmacy ($2 million). The benefit received by the nursing home from the sales tax exemption assuming that pharmacy items are exempt from state sales tax is?
A. $480,000
B. $1.26 million
C. $1.4 million
D. $420,000
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Image text transcribed for accessibility: Demand for hairdresser is much higher over the weekend, when people are not at work.
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