Creating an Invoice
On September 1, Chris Eugene made the following band equipment purchases at Leslie’s Music Store. Calculate her total bill.
DESCRIPTION
Speaker Cabinets, RS101, $400.00, 2
Speaker Cabinets, RG306, $611.00, 2
Horns, BG42, $190.00, 2
Audio Console, LS101, $1,079.00, 1
Power Amplifier, NG107, $416.00, 5
Microphones, RKG-1972, $141.92, 8
Microphone Stands, 1957-210, $32.50, 8
TOTAL
13% DISCOUNT
SALE PRICE
8% SALES TAX
TOTAL COST
3 1 point
Multiple the list price by the quantity to get the total cost per item. For example, for Power Amplifiers you would multiply 416.00 by 5 to total 2080. Add all of these items to get the Subtotal (labeled Total in the graphic at the right). What is the total? Hint: your answer will be between $6000-$8000.
T he Correct Answer and Explanation is :
Let’s calculate the total bill step by step based on Chris Eugene’s purchases:
Step 1: Calculate Total Cost per Item
Multiply the price by the quantity:
- Speaker Cabinets, RS101:
$400.00 × 2 = $800.00 - Speaker Cabinets, RG306:
$611.00 × 2 = $1,222.00 - Horns, BG42:
$190.00 × 2 = $380.00 - Audio Console, LS101:
$1,079.00 × 1 = $1,079.00 - Power Amplifier, NG107:
$416.00 × 5 = $2,080.00 - Microphones, RKG-1972:
$141.92 × 8 = $1,135.36 - Microphone Stands, 1957-210:
$32.50 × 8 = $260.00
Step 2: Add All to Get Subtotal (Total Before Discount and Tax)
800+1222+380+1079+2080+1135.36+260=7,056.36800 + 1222 + 380 + 1079 + 2080 + 1135.36 + 260 = \mathbf{7,056.36}
Step 3: Apply 13% Discount
7,056.36×0.13=917.33 (discount)7,056.36 × 0.13 = 917.33 \text{ (discount)} 7,056.36−917.33=6,139.03 (Sale Price)7,056.36 − 917.33 = \mathbf{6,139.03} \text{ (Sale Price)}
Step 4: Add 8% Sales Tax
6,139.03×0.08=491.12 (sales tax)6,139.03 × 0.08 = 491.12 \text{ (sales tax)} 6,139.03+491.12=6,630.15 (Total Cost)6,139.03 + 491.12 = \mathbf{6,630.15} \text{ (Total Cost)}
✅ Final Answer: $6,630.15
Explanation
To calculate the total invoice for Chris Eugene’s music equipment purchase on September 1, we must systematically apply basic arithmetic and understand key business terms such as subtotal, discount, sale price, and sales tax.
First, we compute the subtotal, which is the total cost before applying any discounts or taxes. We do this by multiplying the unit price of each item by its quantity. For example, five power amplifiers at $416 each results in $2,080. This step is repeated for all items: speaker cabinets, horns, microphones, and stands.
Once the subtotal of $7,056.36 is determined, we apply a 13% discount. A discount reduces the buyer’s price as an incentive or promotional offer. Thirteen percent of the subtotal amounts to $917.33, which we subtract to get the sale price of $6,139.03.
Next, we compute sales tax, a mandatory government levy on purchases, calculated here at 8%. Multiplying the sale price by 0.08 gives $491.12. Adding this tax to the sale price results in the total amount payable: $6,630.15.
Understanding these steps is essential for both business transactions and personal budgeting. It helps in verifying invoices, planning expenditures, and recognizing how discounts and taxes affect the final cost. Accurate invoicing also maintains transparency and builds trust between buyer and seller.
