Glenda makes an online purchase of 4 picture frames for [tex]$\$ 12.95$[/tex] each and 4 mats for [tex]$\[tex]$ 5.89$[/tex][/tex] each. The site says that taxes paid by the customer are [tex]6.5\%[/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$[/tex] \\
\hline
[tex]$\[tex]$ 50$[/tex][/tex] up to [tex]$\$ 100$[/tex] & [tex]$\[tex]$ 6.35$[/tex][/tex] & [tex]$\$ 8.20$[/tex] \\
\hline
[tex]$\[tex]$ 100$[/tex][/tex] up to [tex]$\$ 200$[/tex] & [tex]$\[tex]$ 7.80$[/tex][/tex] & [tex]$\$ 11.60$[/tex] \\
\hline
[tex]$\[tex]$ 200$[/tex][/tex] and over & [tex]$\$ 10.50$[/tex] & [tex]$\[tex]$ 16.45$[/tex][/tex] \\
\hline
\end{tabular}

Glenda selects express shipping for her purchase, and the company bills her credit card [tex]$\$ 91.86$[/tex] for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase.

a. Glenda has been billed correctly.
b. Glenda has not been charged enough for her purchase.
c. Glenda has been overcharged by [tex]$\[tex]$ 3.40$[/tex][/tex] for her purchase.
d. Glenda has been overcharged by [tex]$\$ 3.80$[/tex] for her purchase.



Answer :

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

1. Calculate the subtotal for frames and mats:

[tex]\[ \text{Price per frame} = \$12.95 \\ \text{Quantity of frames} = 4 \\ \text{Subtotal for frames} = 4 \times 12.95 = \$51.80 \][/tex]

[tex]\[ \text{Price per mat} = \$5.89 \\ \text{Quantity of mats} = 4 \\ \text{Subtotal for mats} = 4 \times 5.89 = \$23.56 \][/tex]

[tex]\[ \text{Total subtotal} = \$51.80 + \$23.56 = \$75.36 \][/tex]

2. Calculate the tax amount based on the subtotal:

[tex]\[ \text{Tax rate} = 6.5\% \\ \text{Tax amount} = 75.36 \times 0.065 = \$4.8984 \approx \$4.90 \][/tex]

3. Calculate the total before shipping:

[tex]\[ \text{Total before shipping} = \$75.36 + \$4.90 = \$80.26 \][/tex]

4. Determine the shipping cost based on the total before shipping:

Since Glenda selected express shipping and the amount before shipping is \[tex]$80.26, we refer to the shipping table: \[ 50 < \$[/tex]80.26 \leq 100 \Rightarrow \text{Express Shipping} = \[tex]$8.20 \] 5. Calculate the final total including shipping: \[ \text{Final total} = \$[/tex]80.26 + \[tex]$8.20 = \$[/tex]88.46
\]

6. Compare the calculated final total with the billed amount:

[tex]\[ \text{Billed amount} = \$91.86 \][/tex]

[tex]\[ \text{Difference} = \$91.86 - \$88.46 = \$3.40 \][/tex]

Given the choices:
a. Glenda has been billed correctly.
b. Glenda has not been charged enough for her purchase.
c. Glenda has been overcharged by \[tex]$3.40 for her purchase. d. Glenda has been overcharged by \$[/tex]3.80 for her purchase.

From the calculations above, Glenda has been overcharged by \[tex]$3.40. Hence, the correct answer is: c. Glenda has been overcharged by \$[/tex]3.40 for her purchase.