The problem is confusing because the words (and question marks) are not consistently used. Let's do this:
... (cooler price) + (tax on the cooler) = (total bill)
The <em>cooler price</em> is 100% of the cooler price.
The <em>tax on the cooler</em> is 6% of the cooler price.
The total bill is the total of these:
... (100% × (cooler price)) + (6% × (cooler price)) = (total bill)
Using the distributive property, we can factor out (cooler price) to get ...
... (100% + 6%) × (cooler price) = (total bill)
Adding the numbers together, we have
... (106%) × (cooler price) = (total bill)
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There are two question marks in the addition problem, and each gets a different number. I can't tell from the portion of the picture here what the expected answer is. (I suspect it may be 106%.) I can tell you ...
... 100% of cooler price
... + 6% of cooler price (tax)
... = 106% of cooler price (total bill, $7.95)
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In problems involving retail sales, the term "cost" is usually used to mean the amount the retailer paid his supplier for the item. Here, that term seems to be used interchangeably with the term "price" to refer to the sticker price on the item in the store.