Need answer
a-1 deli sells jugs of iced tea that they have marked up 150% above their wholesale cost of $0.80 per jug. they also charge sales tax of 9%. what is the total cost of a jug of iced tea from a-1 deli?

1. $1.27
2. $1.31
3. $2.00
4. $2.18

Option 4: $2.18

Step-by-step explanation:

Lets first analyse our given information. We know that:

- Original Cost Per Jug: $0.80

- Mark Up cost: 150%

- Sales Tax: 9%

Now the Mark Up cost essentially means that the original price of any item has gone up (i.e. increased). So first let us find the Mark Up final cost of a $0.80 jug when price has increased by 150%, as follow:

Thus the jug after the mark up now costs $2.

Now lets compute the sales tax on the final jug cost, thus the 9% Tax on $2 as follow:

So finally the total cost of a jug of iced tea from A-1 Deli is $2.18 dollars (i.e. Option 4).