Hello,
Can anyone explain the resolution to the below problem:
The manufacturer's 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?
$0 $0.63 $1.80 $1.89 $2.10
Thanks.
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ikaplan
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MSRP= $60
Store A: 60 + 0,2*60= $72
Store B: 60 + 0,3*60= $78, discounted for 10%= 78- 7,8= 70,2
When you add 5% tax to prices both in store A and B:
Store A: 72+ 0,05*72= 75,6
Store B: 70,2+ 0,05*70,2= 70,2+3,51= 73,71
Store A- Store B= 75,6-73,71= $1,89
Store A: 60 + 0,2*60= $72
Store B: 60 + 0,3*60= $78, discounted for 10%= 78- 7,8= 70,2
When you add 5% tax to prices both in store A and B:
Store A: 72+ 0,05*72= 75,6
Store B: 70,2+ 0,05*70,2= 70,2+3,51= 73,71
Store A- Store B= 75,6-73,71= $1,89
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Scott@TargetTestPrep
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Solution:pratyoosh wrote: ↑Sat Nov 20, 2010 2:15 pm
The manufacturer's 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?
$0 $0.63 $1.80 $1.89 $2.10
The total cost of the item at store A is 60 x 1.2 x 1.05 = $75.60.
The total cost of the item at store B is 60 x 1.3 x 0.9 x 1.05 = $73.71.
Therefore, the difference is 75.60 - 73.71 = $1.89.
Answer: D
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