Trevor's Tractor Supply: How Much is the Final Selling Price?

What is Trevor's final selling price after markup and sales tax?

If Trevor paid $12,000 for a tractor and marked up the price by 11%, followed by adding a 5% sales tax, what is the final selling price?

Final Answer:

Trevor marks up the price of the tractor by 11% and then adds on a 5% sales tax. This results in a final selling price of $13,986.

Explanation: Trevor's tractor supply business involves ordering tractors from manufacturers and then applying a markup before adding sales tax. In this case, Trevor initially paid $12,000 for a tractor. First, he marks up the price by 11%, which amounts to $1,320 ($12,000 x 0.11). This brings the new list price to $13,320 ($12,000 + $1,320).

Next, Trevor adds a sales tax of 5% to the list price. The sales tax on $13,320 is $666 ($13,320 x 0.05). By adding this sales tax amount to the list price, the final selling price of the tractor is $13,986 ($13,320 + $666).

Therefore, after applying the 11% markup and 5% sales tax, Trevor's final selling price for the tractor is $13,986.