Question

A store purchased a DVD for $12.00 and sold it to a customer for 50% more than the purchase price. The customer was charged a 7% tax when the DVD was sold. What was the customer's total cost for the DVD?

A.$18.84

B.$19.26

C.$12.84

D.$18.42

Answer 1

B-$19.26

Explanation:

You multiply 12 by 1.5 to get 18 dollars. Then you multiply that by tax. 18 multiplied by 1.07 is 19.26 dollars. This is the final cost.

Answer 2

B $19.26

Explanation:

The 50% mark up on the DVD happens before the sale, the sales tax is added on to the final price.

A 50% mark up means that you are adding 50% of the cost to the DVD. To find this markup, multiply the cost by 0.5 (0.5 is 50% as a decimal)

$12(0.5) = $6

$6 is the markup, so the DVD was sold to the customer at $12 + $6, or $18

The sales tax is charged on the $18 at 7%, so multiply $18 by 0.07 to find how much tax is added.

$18(0.07) = $1.26

So the customer paid $18 + $1.26, or $19.26