First, we need to calculate the subtotal after applying the new customer discount.
Subtotal after discount = Subtotal - Discount
Subtotal after discount = $42.60 - $5.00 = $37.60
Next, we need to calculate the sales tax on the subtotal after discount.
Sales tax = Sales tax rate * Subtotal after discount
Sales tax = 7.5% * $37.60 = $2.82
Finally, we can calculate the invoice total by adding the subtotal after discount and the sales tax.
Invoice total = Subtotal after discount + Sales tax
Invoice total = $37.60 + $2.82 = $40.42
Therefore, the correct invoice total is $40.42.
The correct option is D.
An invoice has a subtotal of $42.60 for the items, a new customer discount of $5.00 to be applied before taxes, and a sales tax of 7.5%. What is the correct invoice total?

A.
$45.10

B.
$51.17

C.
$40.79

D.
$40.42
1 answer