Glenda makes an online purchase of 4 picture frames for $12.95 each and 4 mats for $5.89 each. The site says that taxes paid by the customer are 6.5% 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 |
Glenda selects express shipping for her purchase, and the company bills her credit card $91.86 for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase.
A. Glenda has been billed correctly.
B. Glenda has not been charged enough for her purchase.
C. Glenda has been over charged by $3.40 for her purchase.
D. Glenda has been over charged by $3.80 for her purchase.
Answer (1)
Calculate the total cost of picture frames: 4 \t × $12.95 = $51.80 .
Calculate the total cost of mats: 4 \t × $5.89 = $23.56 .
Calculate the subtotal: $51.80 + $23.56 = $75.36 .
Calculate the tax and shipping, then the total cost: $75.36 + ( 0.065 \t × $75.36 ) + $8.20 = $88.46 . Glenda was overcharged by $91.86 − $88.46 = $3.40 .
Explanation
Calculate the cost of picture frames First, we need to calculate the total cost of the picture frames. Since each frame costs $12.95 and Glenda buys 4, the total cost is: 4 × $12.95 = $51.80
Calculate the cost of mats Next, we calculate the total cost of the mats. Each mat costs $5.89, and Glenda buys 4, so the total cost is: 4 × $5.89 = $23.56
Calculate the subtotal Now, we find the subtotal of the purchase by adding the cost of the picture frames and the cost of the mats: $51.80 + $23.56 = $75.36
Calculate the tax amount The tax is 6.5% of the subtotal, so we calculate the tax amount: 0.065 × $75.36 = $4.8984 Rounding to the nearest cent, the tax is $4.90.
Determine the shipping cost Glenda selected express shipping. Since her subtotal is $75.36, which falls in the range of $50 up to $100, the express shipping cost is $8.20.
Calculate the total cost Now we calculate the total cost by adding the subtotal, tax, and shipping cost: $75.36 + $4.90 + $8.20 = $88.46
Compare calculated cost with billed amount and conclude Finally, we compare the calculated total cost ($88.46) with the amount Glenda was billed ($91.86). The difference is: $91.86 − $88.46 = $3.40 Since the billed amount is higher than the calculated total cost, Glenda was overcharged by $3.40.
Examples
Imagine you're shopping online for party supplies. You buy balloons, decorations, and a cake. Calculating the cost of each item, adding them up to get a subtotal, figuring out the sales tax, and then adding the shipping fee is exactly the kind of math Glenda is doing. This helps you ensure you're not overcharged and stay within your party budget. Understanding these calculations is crucial for managing personal finances and making informed purchasing decisions.
