Question

A-1 Deli sells jugs of iced tea that they have marked up 150% above their wholesale cost of $0.80 per jug. They also charge sales tax of 9%. What is the total cost of a jug of iced tea from A-1 Deli? $1.27 $1.31 $2.00 $2.18

Answer 1

Given :   A- 1 Deli sells jugs of iced tea that they have marked up 150% above their wholesale cost of $0.80 per jug

They also charge sales tax of 9%.

To Find : Total cost of a jug of iced tea from A-1 Deli?

$1.27

$1.31

$2.00

$2.18

Solution:

wholesale cost = 0.8

Marke up price = 0.8  + (150/100)0.8

= 0.8  + 1.2

= 2  $

Sale tax = (9/100)2  = 0.18 $

Total cost of a jug of iced tea from A-1 Deli = 2 + 0.18

= 2.18 $

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