the student store sells pencils that have a markup of 120 percent above their wholesale cost of $0.50 each…

the student store sells pencils that have a markup of 120 percent above their wholesale cost of $0.50 each. they also charge sales tax of 8 percent. what is the total cost of a pencil from the student store?\n$0.64\n$0.65\n$1.10\n$1.19

the student store sells pencils that have a markup of 120 percent above their wholesale cost of $0.50 each. they also charge sales tax of 8 percent. what is the total cost of a pencil from the student store?\n$0.64\n$0.65\n$1.10\n$1.19

Answer

Explanation:

Step1: Calculate the price after markup

The markup is 120% of the wholesale cost. The wholesale cost of a pencil is $0.50. The price after markup is the wholesale cost plus the markup amount. The markup amount is $0.50\times1.20 = 0.50\times(1 + 1.20)=0.50\times2.20 = 1.10$.

Step2: Calculate the price after sales - tax

The sales - tax rate is 8% or 0.08. The price after sales - tax is the price after markup times $(1 + 0.08)$. So the total cost is $1.10\times(1 + 0.08)=1.10\times1.08 = 1.188\approx1.19$.

Answer:

$1.19$