Question

19. A store manager purchases a piece of furniture for $456.00. To determine the selling price, the manager increases the purchase cost by 125%. A customer buys the furniture and pays an additional 8% sales tax. How much does the customer pay for the furniture?

Answer 1

Answer: The customer pays $1108.08 for the furniture.

Explanation:

1. Determine the selling price of the furniture.

2. Calculate the sales tax.

3. Add the sales tax to the selling price.

Step 1: Determine the Selling Price

The store manager increases the purchase cost by 125%. To find the selling price, we first calculate the increase:

`\[\text{Increase} = \text{Purchase Cost} * \frac{\text{Percentage Increase}}{100}\]\[`

`\text{Increase} = \$456.00 * (125)/(100) = \$456.00 * 1.25 = \$570.00\]`

Now, we add this increase to the original purchase cost to find the selling price:

`\[\text{Selling Price} = \text{Purchase Cost} + \text{Increase}\]\[\text{Selling Price} = \$456.00 + \$570.00 = \$1026.00\]`

Step 2: Calculate the Sales Tax

The customer pays an additional 8% sales tax on the selling price. To find the sales tax, we use:

`\[\text{Sales Tax} = \text{Selling Price} * \frac{\text{Sales Tax Percentage}}{100}\]\[`

`\text{Sales Tax} = \$1026.00 * (8)/(100) = \$1026.00 * 0.08 = \$82.08\]`

Step 3: Add the Sales Tax to the Selling Price

Finally, to find out how much the customer pays in total, we add the sales tax to the selling price:

`\[\text{Total Cost} = \text{Selling Price} + \text{Sales Tax}\]\[\text{Total Cost} = \$1026.00 + \$82.08 = \$1108.08\]`

The customer pays $1108.08 for the furniture.