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)
Kito's total purchase cost is calculated to be $105.69, which matches the amount billed to him. This includes the cost of items, sales tax, and shipping. Therefore, Kito has been billed correctly.
;
Calculate the total cost of the items: $39.99 + 24.99 + 26.99 = $91.97.
Calculate the sales tax: $91.97 \times 0.06 = $5.52.
Determine the express shipping cost from the table: $8.20.
Calculate the total cost: $91.97 + 5.52 + 8.20 = 105.69. K i t o ha s b ee nbi ll e d correc tl y , so t h e an s w er i s \boxed{\text{Kito has been billed correctly.}}$
Explanation
Calculate the total cost of items First, we need to calculate the total cost of the items Kito purchased. This includes the guitar case, tuner, and picks.
Total cost of items The cost of the guitar case is $39.99, the tuner is $24.99, and the picks are $26.99. Adding these together, we get: 39.99 + 24.99 + 26.99 = 91.97 So, the total cost of the items is $91.97.
Calculate the sales tax Next, we need to calculate the sales tax. The tax rate is 6% of the total purchase price.
Sales tax amount To calculate the tax, we multiply the total cost of the items by the tax rate: 91.97 × 0.06 = 5.5182 So, the sales tax is $5.52 (rounded to the nearest cent).
Determine the shipping cost Now, we need to determine the shipping cost. Kito selected express shipping, and the shipping charges are based on the amount of purchase.
Express shipping cost The total cost of the items is $91.97, which falls into the $50 up to $100 range in the shipping table. For express shipping in this range, the cost is $8.20.
Calculate the total cost Next, we calculate the total cost including items, tax, and shipping.
Total cost calculation To find the total cost, we add the cost of the items, the sales tax, and the shipping cost: 91.97 + 5.52 + 8.20 = 105.69 So, the total cost is $105.69.
Compare with the billed amount Finally, we compare the calculated total cost with the billed amount.
Conclusion The company billed Kito $105.69, and our calculated total cost is also $105.69. Therefore, Kito has been billed correctly.
Examples
Online shopping involves several costs: the price of the items, sales tax, and shipping fees. Calculating these costs accurately ensures you're not overcharged. This is similar to budgeting for a trip, where you need to account for transportation, accommodation, and activities to avoid unexpected expenses. Understanding how to calculate these costs helps you manage your finances effectively and make informed purchasing decisions.
