Question

Total footfall is 3000. Tax levied on the tickets is 5% and that on donations above $200 is 10%. From the graph below, the total tax levied will be

• A. $300
• B. $310
• C. $290
• D. $280

Answer 1

The correct option is B $310

From the graph consider the points (100, 500) and (300, 900)


The slope here indicates the cost per ticket.
$\text{Slope = unit rate =}\frac{y_2-y_1}{x_2-x_1}$

Putting values you get,
$\text{Slope =}\frac{900-500}{300-100}$
$=\frac{400}{200}$
$=2$

Total footfall is 3000.

$\text{So, total amount from tickets =}2\times 3000=\$6000$

Tax levied is 5%.

So, tax amount on tickets
$=5\%\times \$6000$
$=\frac{5}{100}\times \$6000$
$=\$300$

$\text{Amount donated = y intercept =}\$300$


$\text{Tax levied is 10\% in excess of}\$200.$

∴ Tax on donations will be:
$=10\%\times (\$300-\$200)$
$=\frac{10}{100}\times \$100$
$=\$10$

So, Total tax paid = Tax on tickets + Tax on donations
$=\$10+\$300$
$=\$310$