The student store sells pencils that have a markup of 120 percent above their wholesale cost of 0 point 5 0 dollars each. They also charge sales tax of 8 percent. What is the total cost of a pencil from the student store?

A 120% markup means the selling price before tax is 100% + 120% = 220% of the $0.50 wholesale cost: $0.50 × 2.20 = $1.10. Adding 8% sales tax gives $1.10 × 1.08 = $1.188, which rounds to $1.19. The total cost is 1.19 dollars, choice A.

AI-written and checked against the verified answer.