Question

A frozen dinner at a grocery store is purchased for $2.20 wholesale and is marked up by 40 percent. A customer wants to buy four frozen dinners. How much will the customer pay, including paying 9 percent sales tax? Round your answer to the nearest cent.

Answer 1

Given:

• Wholesale price of a frozen dinner = $$2.20$
• The price is marked up by $40$%.
• Number of frozen dinners required by the customer = $4$
• Sales tax on the final price = $9$%

Required to calculate:

Final amount to be paid by the customer for $4$ frozen dinners after including the sales tax.

Solution:

Let the cost price be denoted by "C.P".

Let the marked up price be denoted by "M.P"

Now,

$C.P=2.20$

From the given data, the marked up price is calculated in the following manner:

$M.P = C.P+(40/100)C.P$

⇒$M.P=2.20+(40/100)*2.20$

⇒$M.P = 2.20+(0.4*2.20)$

⇒$M.P = 2.20+0.88$

⇒$M.P = 3.08$

∴ The sale price of frozen dinner after marking up by 40% is $$3.08$.

Now, the selling price for $4$ frozen dinners as required by the customer is given by:

Let the selling price be denoted by "$S.P$"

Selling price of $4$ frozen dinners = $4*3.08$

⇒$S.P=12.32$

∴ The selling price of $4$ frozen dinners is $$12.32$.

Now, the sales tax is to be added to the selling price to know the final cost of $4$ frozen dinners.

As per given data, the sales is $9$% of the selling price.

Let the final price be denoted by "$P$".

The final price of four frozen dinners is given by:

$P=S.P+(9/100)S.P\\P=12.32+(9/100)*12.32\\P=12.32+1.1088\\P=13.4288$

As asked in the question, the final price is rounded up to the nearest cent.

⇒$P$≅$$14$

Final Answer:

∴ The required final price to be paid by the customer for $4$ frozen dinners is $$14$.