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Difficulty: MediumPercentage Change, Markups, and Discounts

An independent plumbing contractor is purchasing a bulk order of copper piping. The standard retail price for the order is $600.00. The supply warehouse offers a 25% trade discount for licensed contractors. After the discount is applied, a 6% local sales tax is added to the purchase. Calculate the final total cost of the order.

Answer:The final total cost for the copper piping, including tax, is $【477】.

Answer

477.00
The correct answer is found by sequentially calculating the discount and then the tax. First, the 25% discount on 600.00removes600.00 removes 150.00, lowering the price to 450.00.Then,the6450.00. Then, the 6% sales tax is calculated strictly on that 450.00 balance, which adds 27.00.Thefinalsumis27.00. The final sum is 450.00 plus 27.00,whichequals27.00, which equals 477.00.

Step-by-Step Solution

1
Calculate the discount amount by finding 25% of $600.00.
$150.00
This determines how much money is subtracted from the original retail price.
2
Subtract the discount amount from the original retail price to find the discounted price.
600.00−600.00 - 150.00 = $450.00
This provides the base amount upon which the sales tax will be calculated.
3
Calculate the sales tax by finding 6% of the discounted price.
450.00×0.06=450.00 \times 0.06 = 27.00
Sales tax must be applied to the discounted sale price, not the original retail price.
4
Add the sales tax to the discounted price to find the final total cost.
450.00+450.00 + 27.00 = $477.00
This gives the total amount the contractor must pay.

Key Concept

Successive Percentages: Applying a discount to an original price, followed by applying a tax rate to the new discounted price.
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Topics

Percentage Change, Markups, and Discounts

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