Question

A shoe store uses a 50% markup for all of the shoes it sells. The store also charges a 10% sales tax on all purchases. What would be the purchase price, including sales tax, of a pair of shoes that has a wholesale cost of $57?

Answer 1

Answer $94.05

Explanation:

Answer 2

Explanation:

If wholesale cost = $57, it means that the shoe store is buying the shoes at that price.

With a markup of 50%, the selling price(before tax) = 1.50 *57 = $85.5

If sales tax = 10%, it means this is an added cost to the buyer.

Therefore, find the tax in dollars ;

0.10* 85.5 = $8.55

Next, add the sales tax amount of $8.55 to the sales price(before tax) of $85.5;

=85.5 + 8.55

= 94.05

Therefore, a pair of shoes will have an after-tax purchase price of $94.05