Final answer:
A customer would have to pay $311.22 for a hot water heater from an electric company that marks up the wholesale price by 52% and then adds a 5% sales tax.
Step-by-step explanation:
The question is asking how much a customer would have to pay for a hot water heater from an electric company that purchases them at wholesale for $195 each, then applies a 52% markup, and finally adds a 5% sales tax. To calculate the final price to the customer, we first calculate the increased price after the markup, and then we figure out the sales tax on that increased price. Then, we combine these two to get the total cost.
First, let's calculate the markup amount:
- Markup = Wholesale Price × Markup Percentage
- Markup = $195 × 52%
- Markup = $195 × 0.52 = $101.40
Now let's add the markup to the wholesale price to get the new price before tax:
- Price Before Tax = Wholesale Price + Markup
- Price Before Tax = $195 + $101.40 = $296.40
Next, we'll calculate the amount of sales tax:
- Sales Tax = Price Before Tax × Sales Tax Percentage
- Sales Tax = $296.40 × 5%
- Sales Tax = $296.40 × 0.05 = $14.82
Finally, we'll add the sales tax to the price before tax to get the total cost:
- Total Cost = Price Before Tax + Sales Tax
- Total Cost = $296.40 + $14.82 = $311.22
Therefore, the amount a customer would have to pay for the hot water heater, rounded to the nearest cent, is $311.22.