Answer :
To solve the question, let's break down the problem into parts, and I'll walk you through each step:
1. **Calculate the Markup Amount:**
The markup is the additional percentage that is added to the cost price to determine the selling price before tax. To calculate the markup amount, we take the markup percentage and apply it to the cost price of the item.
Markup Amount = (Markup Percentage) * (Cost Price)
2. **Calculate the Selling Price Before Tax:**
After calculating the markup amount, we add it to the cost price to get the selling price before any taxes are applied.
Selling Price Before Tax = Cost Price + Markup Amount
3. **Calculate the Tax Amount:**
The tax is a percentage of the selling price before tax. To calculate the tax amount, we multiply the tax percentage by the selling price before tax.
Tax Amount = (Tax Percentage) * (Selling Price Before Tax)
4. **Calculate the Final Selling Price:**
Finally, the final selling price is the sum of the selling price before tax and the tax amount.
Final Selling Price = Selling Price Before Tax + Tax Amount
Now, let's plug in the given values and calculate each part:
1. Calculate the Markup Amount:
Markup Percentage = 20%
Cost Price = $29.95
Markup Amount = (20/100) * $29.95
Markup Amount = 0.20 * $29.95
Markup Amount = $5.99 (rounded to two decimal places)
2. Calculate the Selling Price Before Tax:
Selling Price Before Tax = $29.95 + $5.99
Selling Price Before Tax = $35.94
3. Calculate the Tax Amount:
Tax Percentage = 2%
Tax Amount = (2/100) * $35.94
Tax Amount = 0.02 * $35.94
Tax Amount = $0.7188, which we will round to $0.72 for simplicity and because typically prices are rounded to the nearest cent.
4. Calculate the Final Selling Price:
Selling Price = $35.94 + $0.72
Selling Price = $36.66
So the final selling price, including the markup and the tax, would be $36.66.
