Question: FedEx operates a model airplane store in Memphis, TN . Fred Smith, a Mississippi resident, comes in for a custom model airplane and purchases a

FedEx operates a model airplane store in Memphis, TN. Fred Smith, a Mississippi resident, comes in for a custom model airplane and purchases a $3,000 model airplane that is shipped to his Mississippi residence using a common carrier. FedEx's total Mississippi sales are $39,000 on 15 transactions. Assuming that Tennessee's sales tax rate is 5 percent and that Mississippi's sales tax rate is 7 percent, what is FedEx's sales and use tax collection obligation?

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