you manage a warehouse and need to replace a forklift. a local retailer sells the model you want for $1,299…

you manage a warehouse and need to replace a forklift. a local retailer sells the model you want for $1,299 plus a 6% sales tax. a store located just over the state line sells the same model for $1,359 plus a 4% sales tax. what is the final cost of the less expensive option? $1,350.96 $1,376.94 $1,413.36 $1,902.60 $2,078.40

you manage a warehouse and need to replace a forklift. a local retailer sells the model you want for $1,299 plus a 6% sales tax. a store located just over the state line sells the same model for $1,359 plus a 4% sales tax. what is the final cost of the less expensive option? $1,350.96 $1,376.94 $1,413.36 $1,902.60 $2,078.40

Answer

Explanation:

Step1: Calculate cost at local retailer

The cost of the forklift at the local retailer is $1299$ with a $6%$ sales - tax. The total cost $C_1$ is the sum of the base price and the tax amount. The tax amount is $6%$ of $1299$, so $C_1=1299 + 0.06\times1299=1299\times(1 + 0.06)=1299\times1.06 = 1376.94$.

Step2: Calculate cost at out - of - state store

The cost of the forklift at the out - of - state store is $1359$ with a $4%$ sales - tax. The total cost $C_2$ is the sum of the base price and the tax amount. The tax amount is $4%$ of $1359$, so $C_2=1359+0.04\times1359 = 1359\times(1 + 0.04)=1359\times1.04=1413.36$.

Step3: Compare costs

Compare $C_1 = 1376.94$ and $C_2=1413.36$. Since $1376.94<1413.36$, the less expensive option is the local retailer with a cost of $1376.94$.

Answer:

$1376.94$