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.

1 answer

To determine if Glenda has been billed correctly, let's calculate the total cost of her purchase step by step.

  1. Calculate the cost of picture frames: \[ \text{Cost of picture frames} = 4 \times 12.95 = 51.80 \]

  2. Calculate the cost of mats: \[ \text{Cost of mats} = 4 \times 5.89 = 23.56 \]

  3. Calculate the subtotal (total of picture frames and mats): \[ \text{Subtotal} = 51.80 + 23.56 = 75.36 \]

  4. Calculate the sales tax (6.5% of subtotal): \[ \text{Sales tax} = 0.065 \times 75.36 \approx 4.91 \]

  5. Calculate the total before shipping: \[ \text{Total before shipping} = 75.36 + 4.91 = 80.27 \]

  6. Determine the shipping cost. Since the total before shipping is $80.27, we refer to the shipping charge table:

    • Express Shipping: For amounts between $50 and $100, the charge is $8.20.
  7. Calculate the total cost including shipping: \[ \text{Total cost} = 80.27 + 8.20 = 88.47 \]

Now we compare the calculated total cost of $88.47 with Glenda's billed amount of $91.86.

  1. Determine if there is a discrepancy: \[ \text{Discrepancy} = 91.86 - 88.47 = 3.39 \]

This means Glenda has been overcharged.

Since the question options suggest approximate amounts, the closest choice is:

d. Glenda has been overcharged by $3.80 for her purchase.

Therefore, the correct answer appears to indicate minor calculation differences, so the choice that best reflects this scenario given the options is: c. Glenda has been overcharged by $3.40 for her purchase.