Question

The manufacturerâs suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A?A. $0B. $0.63C. $1.80D. $1.89E. $2.10

Answer 1

Answer:

C. $1.80

Step-by-step explanation:

Given:

MSRP of a certain item = $60

Percentage of Selling by store A = 20%

Percentage amount will be = $\frac{20}{100}\times 60 = \ 12$

Sales tax = 5% on purchase price

Amount of sales tax = $\frac{5}{100}\times 60 = \ 3$

Total Cost of item at Store A is MSRP of a certain item plus Percentage amount of selling the item plus Amount of Sales tax.

framing in equation form we get;

Total Cost of item at Store A = $60+12+3 =\ 75$

Also Given:

Percentage of Selling by store B = 30%

Percentage amount will be = $\frac{30}{100}\times 60 = \ 18$

Regular price of item at store B = $60+18 = \ 78$

Percentage of discount of item at store B = 10% on regular price

Amount of discounted item at store B = $\frac{10}{100}\times78 = \ 7.8$

Now regular price of item with discount at store B will be equal to Regular price of item at store B minus Amount of discounted item.

regular price of item with discount at store B = $78-7.8 = \ 70.2$

Sales tax = 5% on purchase price

Amount of sales tax = $\frac{5}{100}\times 60 = \ 3$

Total Cost of item at Store B is regular price of item with discount at store B plus Amount of Sales tax.

framing in equation form we get;

Total Cost of item at Store B = $70.2+3 =\ 73.2$

The result when total cost of the item at Store B is subtracted from the total cost of the item at Store A  = $73.2 - $75 = $1.80.

Hence the result is $1.80.