Natasha makes on online purchase of 3 hard cover books for $19.95 each and 1 book on tape for $17.43. The site says that taxes paid by the customer are 7.25% 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
Natasha selects standard shipping for her purchase and the company bills her credit card $91.08 for the total of the online purchase. Determine if Natasha has been billed correctly for her purchase.
a.
Natasha has been billed correctly.
b.
Natasha has not been charged enough for her purchase.
c.
Natasha has been over charged by $1.85 for her purchase.
d.
Natasha has been over charged by $8.20 for her purchase.

1 answer

To determine if Natasha has been billed correctly for her purchase, let's break down the costs step by step.

  1. Cost of Books:

    • 3 hard cover books at $19.95 each: \[ 3 \times 19.95 = 59.85 \]
    • 1 book on tape at $17.43: \[ 1 \times 17.43 = 17.43 \]
    • Total cost of the books: \[ 59.85 + 17.43 = 77.28 \]
  2. Sales Tax:

    • Sales tax is 7.25% of the total purchase price. Calculate the tax on $77.28: \[ 0.0725 \times 77.28 = 5.95 \quad (\text{approximately}) \]
  3. Total Cost Before Shipping:

    • Add the subtotal and the tax: \[ 77.28 + 5.95 = 83.23 \]
  4. Shipping Charges:

    • Since the total purchase price of $83.23 falls within the "$50 up to $100" range, the standard shipping charge is $6.35.
  5. Total Cost:

    • Add the total cost before shipping to the shipping charge: \[ 83.23 + 6.35 = 89.58 \]

Now, comparing this total with the amount billed to Natasha:

  • The billed amount is $91.08.
  • The calculated total is $89.58.

Now to check if Natasha has been charged correctly:

\[ 91.08 - 89.58 = 1.50 \]

Natasha has been overcharged by $1.50.

The rounding of the tax may create slight discrepancies, but let's check the options provided:

a. Natasha has been billed correctly. (False) b. Natasha has not been charged enough for her purchase. (False) c. Natasha has been overcharged by $1.85 for her purchase. (False) d. Natasha has been overcharged by $8.20 for her purchase. (False)

Since none of the options accurately match our calculation, we conclude that Natasha has indeed been overcharged, but the closest option seems to indicate an error. Thus, while the calculated overcharge per our figures is $1.50, the options provided do not reflect this result.

Therefore, we conclude that: Natasha has been overcharged.