Question

The manufacturerâs suggested retail price (MSRP) of a certain item is $60. Store A sells the item for 20 percent more than the MSRP. The regular price of the item at Store B is 30 percent more than the MSRP, but the item is currently on sale for 10 percent less than the regular price. If sales tax is 5 percent of the purchase price at both stores, what is the result when the total cost of the item at Store B is subtracted from the total cost of the item at Store A?A. $0B. $0.63C. $1.80D. $1.89E. $2.10

Answer 1

C. $1.80

Explanation:

Given:

MSRP of a certain item = $60

Percentage of Selling by store A = 20%

Percentage amount will be =
`(20)/(100)* 60 = \$12`

Sales tax = 5% on purchase price

Amount of sales tax =
`(5)/(100)* 60 = \$3`

Total Cost of item at Store A is MSRP of a certain item plus Percentage amount of selling the item plus Amount of Sales tax.

framing in equation form we get;

Total Cost of item at Store A =
`60+12+3 =\$75`

Also Given:

Percentage of Selling by store B = 30%

Percentage amount will be =
`(30)/(100)* 60 = \$18`

Regular price of item at store B =
`60+18 = \$78`

Percentage of discount of item at store B = 10% on regular price

Amount of discounted item at store B =
`(10)/(100)*78 = \$7.8`

Now regular price of item with discount at store B will be equal to Regular price of item at store B minus Amount of discounted item.

regular price of item with discount at store B =
`78-7.8 = \$70.2`

Sales tax = 5% on purchase price

Amount of sales tax =
`(5)/(100)* 60 = \$3`

Total Cost of item at Store B is regular price of item with discount at store B plus Amount of Sales tax.

framing in equation form we get;

Total Cost of item at Store B =
`70.2+3 =\$73.2`

The result when total cost of the item at Store B is subtracted from the total cost of the item at Store A = $73.2 - $75 = $1.80.

Hence the result is $1.80.