We are given that an item has a cost xx.
First, we will calculate the 35% discount on the total price. To do that we will subtract 35% of the initial cost from the initial cost
To calculate the 35% we multiply the price by 35/100, like this:

Now we subtract this from the initial price, which was "xx". Subtracting we get:

This is the cost with the discount. Now, we will add to this the tax of 7%. First, we calculate the 7% of the price with the discount by multiplying it by 7/100, like this:

Now, we add this to the price with the discount, like this:

Now, we can simplify. We start by using the distributive property on the second parenthesis:

Now we solve the product of 35/100 by 7/100, we get:

Now we take xx as a co