Question

The student store sells pencils that have a markup of 120 percent above their wholesale cost of $0.50 each. They also charge sales tax of 8 percent. What is the total cost of a pencil from the student store?

Answer 1

$1.19 is right also you probably needed this a week ago but here is the answer. 

Answer 2

The total cost of a pencil from the student store is $ 1.188

Explanation:

Given,

The original cost or wholesale cost of each pencil = $ 0.50,

Markup percentage = 120 %,

So, the cost of the pencil after markup = 0.50 + 120% of 0.50

`=0.50+(120* 0.50)/(100)`

`=0.50+(60)/(100)`

`=0.50+0.6`

`=1.1`

Now, sales tax = 8 %,

Hence, the final total cost of a pencil = 1.1 + 8 % of 1.1

`=1.1 + (8* 1.1)/(100)`

`=1.1+(8.8)/(100)`

`=1.1+0.088`

`=\$1.188`