Question

Kito makes on 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 over charged by $1.85 for his purchase.
d.
Kito has been over charged by $3.40 for his purchase.


Please select the best answer from the choices provided

A
B
C
D

Answer 1

To determine if Kito has been billed correctly for his purchase, we need to calculate the total cost, including the items he purchased, the tax, and the shipping costs.

1. **Calculate the subtotal of the items:**
- Guitar case: $39.99
- Tuner: $24.99
- Picks: $26.99

Subtotal = $39.99 + $24.99 + $26.99 = $91.97

2. **Calculate the tax (6% of subtotal):**
Tax = 0.06 × $91.97 = $5.5182 (approximately $5.52 when rounded to two decimal places)

3. **Calculate Total before Shipping:**
Total before shipping = Subtotal + Tax
Total before shipping = $91.97 + $5.52 = $97.49

4. **Determine the shipping cost:**
Since the total before shipping is $97.49, it falls into the "50 up to $100" category for express shipping, which costs $8.20.

5. **Calculate the grand total:**
Grand Total = Total before shipping + Express Shipping
Grand Total = $97.49 + $8.20 = $105.69

Kito was billed $105.69, which matches our calculated grand total.

Therefore, the best answer is:

**A. Kito has been billed correctly.**