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:

Question

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.

Answer 1

To determine if Kito has been billed correctly, we will need to calculate the total purchase price, including taxes and shipping costs.

1. Calculate the total cost of the items:

   • Guitar case: $39.99
   • Tuner: $24.99
   • Picks: $26.99

   Total cost of items = $39.99 + $24.99 + $26.99 = $91.97

2. Calculate the sales tax (6% of the total cost):

   • Sales tax = 6% of $91.97 = 0.06 × 91.97 = $5.5182 (approximately $5.52 when rounded)

3. Add the sales tax to the total cost of items:

   • Total cost including tax = $91.97 + $5.52 = $97.49

4. Determine the shipping charge for express shipping:

   • The total cost ($91.97) falls in the range of $50 to $100, which corresponds to an express shipping cost of $8.20.

5. Calculate the final total:

   • Final total = Total cost including tax + Shipping charge
   • Final total = $97.49 + $8.20 = $105.69

Since the final calculated total is $105.69, which matches the amount billed to Kito, we can conclude that:

a. Kito has been billed correctly.