Difficulty: Medium
Average Score: 79%
Entry Exam
A consumer purchases a new sofa that is on sale for 10% off. The original price of the sofa is $950. Which of the following prices represents the sale price of the sofa before taxes are applied?
Correct answer
B
Rationale
To find the sale price before taxes, you need to deduct 10% of the original price ($950) from the original price. This is calculated as follows: $950 - ($950 * 0.10) = $950 - $95 = $855. Therefore, the sale price of the sofa before taxes is $855. This calculation involves applying the 10% discount to the original price to determine the reduced sale price. The correct answer is $855.