Question

NEED ANSWER ASAP!!

A-1 Deli sells jugs of iced tea that they have marked up 150% above their wholesale cost of $0.80 per jug. They also charge sales tax of 9%. What is the total cost of a jug of iced tea from A-1 Deli?

1. $1.27
2. $1.31
3. $2.00
4. $2.18

Answer 1

2.18

Explanation:

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Answer 2

Option 4: $2.18

Explanation:

Lets first analyse our given information. We know that:

- Original Cost Per Jug: $0.80

- Mark Up cost: 150%

- Sales Tax: 9%

Now the Mark Up cost essentially means that the original price of any item has gone up (i.e. increased). So first let us find the Mark Up final cost of a $0.80 jug when price has increased by 150%, as follow:

`0.80+0.80(150)/(100) =0.80 + 1.2=2`

Thus the jug after the mark up now costs $2.

Now lets compute the sales tax on the final jug cost, thus the 9% Tax on $2 as follow:

`2+2(9)/(100)=2+0.18=2.18`

So finally the total cost of a jug of iced tea from A-1 Deli is $2.18 dollars (i.e. Option 4).