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In the state where Ozzies Office Supply is located, the sales tax on

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Sajjad1994
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In the state where Ozzies Office Supply is located, the sales tax on [#permalink] New post   30 Oct 2023, 08:48
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Data Insights (DI) Butler 2023-24 [Question #78, Date: Oct-30-2023] [Click here for Details]


In the state where Ozzie’s Office Supply is located, the sales tax on all orders is 6% of the order cost. Ozzie’s adds a shipping charge, which is calculated as a percentage of the amount after tax has been added. The percentage rate for that shipping charge varies, however, with the size of the order. The company charges one rate for orders less than or equal to $100, another for orders over $100 but not more than $500, and a third for orders over $500. From experience, you know that the final cost, including tax and shipping, is $109.18 for an order of $100, $217.30 for an order of $200, and $756.84 for an order of $700. Find the final cost for orders of $499 and $502.
Final cost of $499 order Final cost of $502 order
$541.08
$541.68
$542.16
$542.76
$543.25
$543.84
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Final cost of $499 order: $542.16 Final cost of $502 order: $542.76
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Re: In the state where Ozzies Office Supply is located, the sales tax on [#permalink] New post   31 Oct 2023, 19:16
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Sajjad1994 wrote:
Data Insights (DI) Butler 2023-24 [Question #78, Date: Oct-30-2023] [Click here for Details]


In the state where Ozzie’s Office Supply is located, the sales tax on all orders is 6% of the order cost. Ozzie’s adds a shipping charge, which is calculated as a percentage of the amount after tax has been added. The percentage rate for that shipping charge varies, however, with the size of the order. The company charges one rate for orders less than or equal to $100, another for orders over $100 but not more than $500, and a third for orders over $500. From experience, you know that the final cost, including tax and shipping, is $109.18 for an order of $100, $217.30 for an order of $200, and $756.84 for an order of $700. Find the final cost for orders of $499 and $502.



For an order of $200, Sales tax is $12 since 6% of 200 is 12. The effective price after sales tax = $212. Final Price is $217.3. Calculating percentage increase from amount after sales tax = (217.3-212)/212 = 2.5%
For an order of $700, Sales tax is $42 since 6% of 700 is 42. The effective price after sales tax = $742. Final Price is $756.84. Calculating percentage increase from amount after sales tax = (756.84-742)/742 = 2%

Which means for order above 100 but less than 500, final value is 2.5% higher than the amount including sales tax while for orders above 500, its 2% higher than the amount including sales tax.
Using this information

For order value of $499, Final cost is 499*1.06*1.025 = 542.16
For order value of $502, Final cost is 502*1.06*1.02 = 542.76
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Re: In the state where Ozzies Office Supply is located, the sales tax on [#permalink] New post   08 Nov 2023, 07:35
how to solve this in lesser time
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Re: In the state where Ozzies Office Supply is located, the sales tax on [#permalink] New post   12 Nov 2023, 04:27
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mkvsirisha wrote:
how to solve this in lesser time


We are told that rates changes with sizes. The text gives us two examples which include both costs, one for a quantity between 100 and 500, useful to calculate then for 499, and the other for a size over 500, useful for 502.

As the rate seems to be costant for each quantity, we can calculate 217,30/200 (our rate) * 499 = 542,16
Same for the other, we calculate the costant rate for seize > 500 as it folows: 756,84/700 and then multiply it for 502 = 542,76
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Re: In the state where Ozzies Office Supply is located, the sales tax on [#permalink]
12 Nov 2023, 04:27
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