Kito makes an online purchase of a guitar case for [tex]\$ 39.99[/tex], a tuner for [tex]\$ 24.99[/tex], and picks for [tex]\$ 26.99[/tex]. Taxes are [tex]6 \%[/tex] of the total purchase price. Shipping charges are based on the following table:

\begin{tabular}{|c|c|c|}
\hline
Amount of Purchase & Standard Shipping & Express Shipping \\
\hline
up to [tex]\$ 50[/tex] & [tex]\[tex]$ 5.10[/tex] & [tex]\$[/tex] 7.00[/tex] \\
\hline
[tex]\$ 50[/tex] up to [tex]\$ 100[/tex] & [tex]\$ 6.35[/tex] & [tex]\$ 8.20[/tex] \\
\hline
[tex]\[tex]$ 100[/tex] up to [tex]\$[/tex] 200[/tex] & [tex]\$ 7.80[/tex] & [tex]\$ 11.60[/tex] \\
\hline
[tex]\$ 200[/tex] and over & [tex]\$ 10.50[/tex] & [tex]\$ 16.45[/tex] \\
\hline
\end{tabular}

Kito selects express shipping, and the company bills his credit card [tex]\$ 105.69[/tex] 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 overcharged by [tex]\[tex]$ 1.85[/tex] for his purchase.
D. Kito has been overcharged by [tex]\$[/tex] 3.40[/tex] for his purchase.

Please select the best answer from the choices provided.



Answer :

Let's go through the problem step-by-step to determine if Kito has been billed correctly.

### Step 1: Calculate Total Purchase Price Before Tax
Kito purchases:
- A guitar case for [tex]$39.99 - A tuner for $[/tex]24.99
- Picks for [tex]$26.99 Adding these together: \[ 39.99 + 24.99 + 26.99 = 91.97 \] ### Step 2: Calculate Tax The tax rate is \(6\%\). The tax amount is calculated by: \[ \text{Tax} = 91.97 \times 0.06 = 5.5182 \] ### Step 3: Calculate Total Purchase Price Including Tax Adding the tax to the total purchase price: \[ 91.97 + 5.5182 = 97.4882 \] ### Step 4: Determine Shipping Cost Based on the purchase categories: For a total purchase (before tax) of $[/tex]91.97, which is between [tex]$50 and $[/tex]100, the express shipping cost is:
[tex]\[ \$ 8.20 \][/tex]

### Step 5: Calculate Final Amount Charged
Adding the shipping cost to the total (after tax):
[tex]\[ 97.4882 + 8.20 = 105.6882 \][/tex]

### Step 6: Compare With Billed Amount
Kito's billed amount is [tex]$105.69. Rounding the calculated amount to two decimal places: \[ 105.6882 \approx 105.69 \] ### Conclusion Comparing the calculated amount ($[/tex]105.69) with the billed amount ($105.69), we see they are equal.

Therefore, the best answer is:
[tex]\[ \text{a. Kito has been billed correctly.} \][/tex]