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 whether Glenda has been billed correctly for her online purchase, we need to calculate the total cost step by step.

  1. Calculate the cost of the picture frames:

    • 4 picture frames at $12.95 each: \[ 4 \times 12.95 = 51.80 \]
  2. Calculate the cost of the mats:

    • 4 mats at $5.89 each: \[ 4 \times 5.89 = 23.56 \]
  3. Calculate the subtotal for the purchase: \[ \text{Subtotal} = 51.80 + 23.56 = 75.36 \]

  4. Calculate the sales tax (6.5% of the subtotal): \[ \text{Sales Tax} = 0.065 \times 75.36 = 4.9024 \approx 4.90 \]

  5. Calculate the total before shipping: \[ \text{Total Before Shipping} = \text{Subtotal} + \text{Sales Tax} = 75.36 + 4.90 = 80.26 \]

  6. Determine the shipping charge:

    • Since the total before shipping ($80.26) falls in the range of $50 up to $100, the express shipping charge is $8.20.
  7. Calculate the final total: \[ \text{Final Total} = 80.26 + 8.20 = 88.46 \]

Now, let's compare the calculated final total of $88.46 with the amount Glenda was billed ($91.86):

  1. Determine if there is a discrepancy: \[ \text{Difference} = 91.86 - 88.46 = 3.40 \]

Since Glenda was overcharged by $3.40, the correct answer is: c. Glenda has been overcharged by $3.40 for her purchase.