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At Walter's Sub Shop, Walter provides a free sub to a customer after

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Concentration: Finance, International Business
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At Walter's Sub Shop, Walter provides a free sub to a customer after [#permalink]

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At Walter's Sub Shop, Walter provides a free sub to a customer after the customer buys 4. Customers need to pay a 5% sales tax on all subs, including the free sub. If each sub costs x dollars before tax, then how much will Kevin need to spend to get 10 subs?

A 8.5x dollars
B 9.0x dollars
C 9.5x dollars
D 10.0x dollars
E 10.5x dollars
[Reveal] Spoiler: OA

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Last edited by Tridhipal on 08 Feb 2018, 23:47, edited 1 time in total.
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At Walter's Sub Shop, Walter provides a free sub to a customer after [#permalink]

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We are given the cost of a sub to be x.

The cost of the 10 subs is 8x(because you will get 2 free subs along
with the 8 paid ones)
Since, a sales tax of 5% is charged on each of the 10 subs, the charges
accrued due to the sales tax would be 10*0.05x = 0.5x

Therefore, the total cost of 10 subs is $(8x + 0.5x) = $8.5x(Option A)

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Manager
Manager
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Joined: 01 May 2016
Posts: 55
Location: United States
Concentration: Finance, International Business
GPA: 3.8
Re: At Walter's Sub Shop, Walter provides a free sub to a customer after [#permalink]

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New post 08 Feb 2018, 23:49
pushpitkc wrote:
Tridhipal wrote:
At Walter's Sub Shop, Walter provides a free sub to a customer after the customer buys 4. Customers need to pay a 5% sales tax on all subs, including the free sub. If each sub costs x dollars before tax, then how much will Kevin need to spend to get 10 subs?

A 8.5 dollars
B 9.0 dollars
C 9.5 dollars
D 10.0 dollars
E 10.5 dollars


Hey Tridhipal

If the cost of each sub is x dollars before tax, how can the answers not contain x.
Could you please check the question once again?

However, if we assume x=$1, then Option A(8.5$) is a valid answer since the
5% sales tax on each of the ten subs will be 0.05$ each and Walter would have
paid 8$ of the 8 of the 10 subs(since there is an offer - Buy 4, Get 1 Sub FREE)

Thank u for noticing it..answer options correction done.
_________________

TD

BSchool Forum Moderator
User avatar
V
Joined: 26 Feb 2016
Posts: 2061
Location: India
GPA: 3.12
Premium Member CAT Tests
At Walter's Sub Shop, Walter provides a free sub to a customer after [#permalink]

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New post 09 Feb 2018, 00:07
Tridhipal wrote:
pushpitkc wrote:
Tridhipal wrote:
At Walter's Sub Shop, Walter provides a free sub to a customer after the customer buys 4. Customers need to pay a 5% sales tax on all subs, including the free sub. If each sub costs x dollars before tax, then how much will Kevin need to spend to get 10 subs?

A 8.5 dollars
B 9.0 dollars
C 9.5 dollars
D 10.0 dollars
E 10.5 dollars


Hey Tridhipal

If the cost of each sub is x dollars before tax, how can the answers not contain x.
Could you please check the question once again?

However, if we assume x=$1, then Option A(8.5$) is a valid answer since the
5% sales tax on each of the ten subs will be 0.05$ each and Walter would have
paid 8$ of the 8 of the 10 subs(since there is an offer - Buy 4, Get 1 Sub FREE)

Thank u for noticing it..answer options correction done.


Have updated the solution accordingly!
_________________

Stay hungry, Stay foolish

2017-2018 MBA Deadlines

Class of 2020: Rotman Thread | Schulich Thread
Class of 2019: Sauder Thread

At Walter's Sub Shop, Walter provides a free sub to a customer after   [#permalink] 09 Feb 2018, 00:07
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