The cost price for the shirt is $7
CP = $7
Mark up = 350%
The mark up is given by the formula:
[tex]\begin{gathered} \text{Mark}-up\text{ = }\frac{SP-CP}{CP}\times100\% \\ 350\text{ = }\frac{SP-7}{7}\times100 \\ \frac{350\times7}{100}=\text{ SP-7} \\ 24.5=SP-7 \\ SP\text{ = 7+2.5} \\ SP\text{ = \$9.5} \end{gathered}[/tex]
Profit = Selling Price - Cost Price
Profit = 9.5 - 7
Store's Profit = $2.5
Tax % = 8.5%
Tax = 8.5% of the cost price
Tax = (8.5/100) x 7
Tax = 0.085 x 7
Tax = $0.595
Total = Tax + Cost Price
Total = $0.595 + $7
Total = $7.595
