If a unit of fertilizer costs $12.00 and the state sales tax rate is 6 percent, how much does a customer owe for 3 units of fertilizer, including sales tax?

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Multiple Choice

If a unit of fertilizer costs $12.00 and the state sales tax rate is 6 percent, how much does a customer owe for 3 units of fertilizer, including sales tax?

Explanation:
Calculating the total cost with tax starts with the pre-tax subtotal. Multiply the unit price by the quantity: 3 × $12.00 = $36.00. Then apply the 6% sales tax to that subtotal: 0.06 × $36.00 = $2.16. Add the tax to the subtotal to get the amount owed: $36.00 + $2.16 = $38.16. The customer owes $38.16. This works because the tax is applied to the total purchase, and multiplying first then applying the rate gives the correct final amount.

Calculating the total cost with tax starts with the pre-tax subtotal. Multiply the unit price by the quantity: 3 × $12.00 = $36.00. Then apply the 6% sales tax to that subtotal: 0.06 × $36.00 = $2.16. Add the tax to the subtotal to get the amount owed: $36.00 + $2.16 = $38.16. The customer owes $38.16. This works because the tax is applied to the total purchase, and multiplying first then applying the rate gives the correct final amount.

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