Kito makes an online purchase of a guitar case for $39.99, a tuner for $24.99, and picks for $26.99. Taxes are 6% of the total purchase price. Shipping charges are based on the following table:
| Amount of Purchase | Standard Shipping | Express Shipping |
| :----------------- | :---------------- | :--------------- |
| up to $50 | $5.10 | $7.00 |
| $50 up to $100 | $6.35 | $8.20 |
| $100 up to $200 | $7.80 | $11.60 |
| $200 and over | $10.50 | $16.45 |
Kito selects express shipping, and the company bills his credit card $105.69 for the total of the online purchase. Determine if Kito has been billed correctly for his purchase.
A. Kito has been billed correctly.
B. Kito has not been charged enough for his purchase.
C. Kito has been overcharged by $1.85 for his purchase.
D. Kito has been overcharged by $3.40 for his purchase.
Answer (2)
Calculate the total cost of the items: $39.99 + $24.99 + $26.99 = $91.97 .
Calculate the sales tax: 0.06 × $91.97 = $5.52 .
Determine the express shipping cost from the table: $8.20 .
Calculate the total cost: $91.97 + $5.52 + $8.20 = $105.69 . Kito has been billed correctly: $\boxed{a}.
Explanation
Calculate the total cost of items First, we need to calculate the total cost of the items Kito purchased. The items are a guitar case for $39.99 , a tuner for $24.99 , and picks for $26.99 . We add these amounts together:
Sum the costs $39.99 + $24.99 + $26.99 = $91.97
Calculate the sales tax Next, we need to calculate the sales tax. The tax rate is 6% of the total purchase price, which is $91.97 . To find the tax amount, we multiply the total purchase price by 0.06 :
Determine the tax amount 0.06 × $91.97 = $5.5182 We round this to $5.52 .
Determine the shipping cost Now, we need to determine the shipping cost. Kito selected express shipping. His purchase total before tax is $91.97 , which falls into the $50 up to $100 range in the table. Therefore, the express shipping cost is $8.20 .
Calculate the total cost To find the total cost, we add the cost of the items, the sales tax, and the shipping cost:
Sum the costs, tax, and shipping $91.97 + $5.52 + $8.20 = $105.69
Compare calculated cost with billed amount Finally, we compare the calculated total cost ( $105.69 ) with the amount Kito was billed ( $105.69 ). The amounts are the same.
Conclusion Therefore, Kito has been billed correctly.
Examples
Online purchases often involve calculating the total cost, including item prices, sales tax, and shipping fees. This problem demonstrates how to accurately determine the final amount charged to a customer. Understanding these calculations helps consumers verify their bills and manage their budgets effectively. For example, if you're buying multiple items online, calculating the subtotal, applying the sales tax rate, and adding shipping costs will give you the final amount you'll need to pay. This ensures you're not overcharged and helps you plan your expenses.
Kito has been billed correctly for his purchase as the total calculated amount matches the amount billed. The total cost, including item prices, sales tax, and shipping, is $105.69. Therefore, the correct option is A: Kito has been billed correctly.
;
