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: 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. Please select the best answer from the choices provided A B C D

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Answer:

A

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The company's billing Kito's credit card of $105.69 is correct for his purchase

The items are given as:

[tex]Guitar\ case =\$39.99[/tex]

[tex]Tuner =\$24.99[/tex]

[tex]Picks =\$26.99[/tex]

So, the total amount of the items (before tax) is:

[tex]Total =\$39.99 + \$24.99 +\$26.99[/tex]

[tex]Total =\$91.97[/tex]

When the sales tax of 6% is added to the total cost of items, we have:

[tex]Total =\$91.97 \times (1 + 6\%)[/tex]

[tex]Total =\$97.49[/tex]

Kito opts for express deliver.

Considering that express delivery for purchase up to $100 is $8.20, Kito's bill will be

[tex]Bill =\$97.49 + \$8.20[/tex]

[tex]Bill =\$105.69[/tex]

From the question, we understand that the company bills his credit card $105.69

Hence, we can conclude that (a) Kito has been billed correctly.

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