Solution

Given:• Arithmetic average cost of the 3 items purchased by Emma = $25

o Therefore, total amount spent = $25 * 3 = $75

• Sales tax was charged on any item that cost less than $40

• Sales tax of 8% was charged on any item that cost $40 or more

To find:• The amount of sales tax charged on the three items purchased by Emma

Analysing Statement 1• As per the information given in Statement 1, the costliest item purchased by Emma was of $50.

o As it cost more than $40, the sales tax on this item = ($50 * 0.08) = $4

• Total cost of the remaining 2 items = ($75 - $50) = $25

• As the total cost of remaining 2 items is less than $40, those items can’t have sales tax on them

o Therefore, the total sales on the 3 items = $4

• Hence, Statement 1 is sufficient to answer

Analysing Statement 2• As per the information given in Statement 2, the least costly item purchased was of $5

o Therefore, the price of the other 2 items = ($75 - $5) = $70

• Although, the total price of the 2 items is known, no information is provided about their individual price. Depending on the individual prices sales tax can be different. For example:

o If the prices are $35, and $35, sales tax = 0

o However, if the prices are $40, and $30 then sales tax = 8% of $40

• Hence, Statement 2 is not sufficient

Hence, the correct answer is Option A.

Answer: A
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