Question

Good morning,

My name is Mr. Shine (I was given that name because I have the most sparkly diamonds in the
midwest). I am forwarding you the bill for your client Mr. Spendalot who stopped by my store Ice
Box last evening. I have exactly $1,000,000 in inventory of the best diamond rings, necklaces,
cuban chains, grilles, and watches. Now, I must make a profit on this inventory, so I markup all
inventory by 150% before selling it to my loyal customers.
Your client bought a whopping 31% of my entire inventory. He said my special was just too good
to pass up and he just had to buy more more more. What’s that special you ask?
Discounted Special:
Spend 100k+ and get 10% off
Spend 250k+ and get 20% off
Spend 500k+ and get 30% off
Spend 750k+ and get 40% off
Spend 1 million+ and get 50% off
After giving him this discount, I of course had to charge him an 8.5% sales tax on his purchase.
Yes I know, we all hate taxes, but that’s just the cost of doing business. Now your client Mr.
Spendalot is a very kind man and he agreed to give me and my staff a tip of 15%, how
generous of him! He told me to send you the details and you, his accountant, will calculate the
total. If you get this total right, he said he’s giving you the brand new Lamborghini he purchased
at the dealership next door to my store. Must be nice, hopefully you are good at your job!
Good Luck,
Mr. Shine

Answer 1

The task is to calculate the total amount spent by Mr. Spendalot. To do this, you need to calculate the amount of inventory purchased, apply the discount, calculate the sales tax, and add the tip. Here's one way to do it:

Calculate the amount of inventory purchased: 31% of $1,000,000 is 31/100 * $1,000,000 = $310,000

Determine the discount: Based on the purchase amount of $310,000, Mr. Spendalot qualifies for a discount of 10%. So, the discount is $310,000 * 10% = $31,000.

Calculate the sales tax: 8.5% of the purchase amount after discount is 8.5/100 * ($310,000 - $31,000) = $2,067.50

Add the tip: 15% of the purchase amount after discount and sales tax is 15/100 * ($310,000 - $31,000 + $2,067.50) = $52,101.13

Calculate the total: The total amount spent by Mr. Spendalot is ($310,000 - $31,000 + $2,067.50 + $52,101.13) = $393,168.63.

So, the total amount spent by Mr. Spendalot is $393,168.63.

Explanation:

Determine the amount of purchase before discount: Mr. Spendalot bought 31% of Mr. Shine's inventory, which is $1,000,000. Therefore, his purchase before discount is 31% of $1,000,000, or $310,000.

Calculate the discount: Based on the information in the discount table, Mr. Spendalot's purchase qualifies for a 40% discount. Therefore, the discount amount is $310,000 * 40%, or $124,000.

Determine the amount of purchase after discount: After getting the 40% discount, Mr. Spendalot's purchase is $310,000 - $124,000, or $186,000.

Calculate the sales tax: Mr. Shine charged an 8.5% sales tax on Mr. Spendalot's purchase after discount. Therefore, the sales tax amount is $186,000 * 8.5%, or $15,791.

Determine the tip: Mr. Spendalot gave Mr. Shine and his staff a 15% tip on his purchase after discount and sales tax. Therefore, the tip amount is $186,000 + $15,791 * 15%, or $31,328.

Calculate the total cost: Adding up the purchase after discount, sales tax, and tip, we get the total cost of $186,000 + $15,791 + $31,328, or $233,119.

Conclusion: Mr. Spendalot's total purchase cost is $233,119.

The task requires you to calculate the total amount spent by Mr. Spendalot at Mr. Shine's store Ice Box. Mr. Shine has an inventory worth $1,000,000 which he marks up by 150%. Mr. Spendalot bought 31% of this inventory, and was given a discount based on the amount he spent:

Spend 100k+ and get 10% off

Spend 250k+ and get 20% off

Spend 500k+ and get 30% off

Spend 750k+ and get 40% off

Spend 1 million+ and get 50% off

After the discount, Mr. Spendalot was charged 8.5% sales tax. He also left a 15% tip for Mr. Shine and his staff. Your goal is to calculate the total amount spent by Mr. Spendalot.