Answer:
C. $1.80
Step-by-step explanation:
Given:
MSRP of a certain item = $60
Percentage of Selling by store A = 20%
Percentage amount will be = [tex]\frac{20}{100}\times 60 = \$12[/tex]
Sales tax = 5% on purchase price
Amount of sales tax = [tex]\frac{5}{100}\times 60 = \$3[/tex]
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 = [tex]60+12+3 =\$75[/tex]
Also Given:
Percentage of Selling by store B = 30%
Percentage amount will be = [tex]\frac{30}{100}\times 60 = \$18[/tex]
Regular price of item at store B = [tex]60+18 = \$78[/tex]
Percentage of discount of item at store B = 10% on regular price
Amount of discounted item at store B = [tex]\frac{10}{100}\times78 = \$7.8[/tex]
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 = [tex]78-7.8 = \$70.2[/tex]
Sales tax = 5% on purchase price
Amount of sales tax = [tex]\frac{5}{100}\times 60 = \$3[/tex]
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 = [tex]70.2+3 =\$73.2[/tex]
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.
