You work at a beauty supply store and need to order 50 cases of hairspray. One company sells the hairspray for $7.95 per case, plus 8% sales tax. A second company sells the hairspray for $11.95 per case. The second company also offers a rebate of 20% for the whole order, but charges no additional sales tax. If you choose the better of the two prices, how much will you pay for the 50 cases of hairspray?
For the first company, 50 cases cost 50 × $7.95 = $397.50 before tax. Adding 8% tax gives $397.50 × 1.08 = $429.30. The second company’s total after its 20% rebate is $597.50 × 0.80 = $478.00, so the first company is cheaper. You will pay $429.30, the price in choice C.
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