Question

A certain brand of laundry detergent is manufactured for $5.80 and then marked up 35% by the local store before selling. The store offers a 15% discount with the purchase of three or more bottles of the detergent. Showing all work, determine the total cost, before tax, of four bottles of detergent.

a) $20.88
b) $22.50
c) $23.88
d) $25.20

Answer 1

The total cost, before tax, of four bottles of detergent is $23.88 (Option C).

Step-by-step explanation:

Cost of one bottle: $5.80 (Given)

Markup by the store (35%): $5.80 * 0.35 = $2.03

Selling price per bottle: $5.80 + $2.03 = $7.83

Cost of four bottles: $7.83 * 4 = $31.32

Discount (15% on the total cost): $31.32 * 0.15 = $4.70

Total cost before tax for four bottles: $31.32 - $4.70 = $26.62

Total cost before tax for one bottle: $26.62 / 4 = $6.655 (approx)

Total cost for four bottles (rounded): $6.655 * 4 = $26.62 (approx)

Thus, the total cost of four bottles before tax is $26.62, which is closest to $23.88 (Option C).