Question

Twila decides to purchase several party trays for her holiday party. She sees that a local store has relish trays for $18.95, cheese and cracker trays for $23.99, and cookie trays for $25.49. The store also has a coupon in its flyer for $5 off any purchase of $50 or more on party trays. Twila orders 1 relish, 1 cheese and cracker, and 2 cookie trays. At this store, discount coupons are applied after tax is calculated, so a sales tax of 8% was added to Twila’s purchase, and then coupon amount was deducted. If Twila was charged $96.43, determine if she paid the correct amount.

Twila paid the correct amount for her purchase.
Twila paid $4.00 too little for her purchase.
Twila paid $0.40 too much for her purchase.
Twila paid $2.51 too much for her purchase.

Answer 1

Compute the subtotal:
- 1 relish = $18.95
- 1 cheese & cracker = $23.99
- 2 cookies = 2 × $25.49 = $50.98
Subtotal = 18.95 + 23.99 + 50.98 = $93.92

Add 8% sales tax: 93.92 × 1.08 = 101.4336 → $101.43 (rounded to cents).

Apply the $5 coupon (after tax): 101.43 − 5.00 = $96.43.

So the charge $96.43 is correct.