Answer:
Option 4: $2.18
Step-by-step explanation:
Lets first analyse our given information. We know that:
- Original Cost Per Jug: $0.80
- Mark Up cost: 150%
- Sales Tax: 9%
Now the Mark Up cost essentially means that the original price of any item has gone up (i.e. increased). So first let us find the Mark Up final cost of a $0.80 jug when price has increased by 150%, as follow:
[tex]0.80+0.80\frac{150}{100} =0.80 + 1.2=2[/tex]
Thus the jug after the mark up now costs $2.
Now lets compute the sales tax on the final jug cost, thus the 9% Tax on $2 as follow:
[tex]2+2\frac{9}{100}=2+0.18=2.18[/tex]
So finally the total cost of a jug of iced tea from A-1 Deli is $2.18 dollars (i.e. Option 4).
