Question

Wyatt owns a new store on the boardwalk by the beach. He plans to sell beach balls in his store. Each one costs him $4.95. He wants to charge close to $10 for each beach ball to make a profit. However, there is a 8% sales tax in his area and he does not want to customers to have to pay more than $10 total for a beach ball. How much should he charge customers for a beach ball? Explain your reasoning.

Answer 1

Wyatt should charge $9.26 before 8% sales tax  if he does not want customers to pay more than $10.00

They will actually be charged $10 exactly.

9.26*.08= .74

.74+9.26= 10