The following is an excerpt from a conversation between

Mark
The following is an excerpt from a conversation between Mark Loomis and Krista Huff.Mark is
debating whether to buy a stereo system from Tru-Sound Systems, a locally owned electronics
store, or Wholesale Stereo, an online electronics company.Mark: Krista, I don't know what to do
about buying my new stereo.Krista: What's the problem?Mark: Well, I can buy it locally at Tru-
Sound Systems for $1,175.00. However, Wholesale Stereo has the same system listed for
$1,200.00.Krista: What's the big deal? Buy it from Tru-Sound Systems.Mark: It's not quite that
simple. Wholesale Stereo charges $49.99 for shipping and handling. If I have them send it next-
day air, it'll cost $89.99 for shipping and handling.Krista: So?Mark: But, that's not all. Tru-Sound
Systems will give an additional 2% discount if I pay cash. Otherwise, they will let me use my
VISA, or I can pay it off in three monthly installments. In addition, if I buy it from Tru-Sound
Systems, I have to pay 9% sales tax. I won't have to pay sales tax if I buy it from Wholesale
Stereo, since they are out of state.Krista: Anything else???Mark: Well . . . Wholesale Stereo
says I have to charge it on my VISA. They don't accept checks.Krista: I am not surprised. Many
online stores don't accept checks.Mark: I give up. What would you do?1. Assuming that
Wholesale Stereo doesn't charge sales tax on the sale to Mark, which company is offering the
best buy?2. What might be some considerations other than price that might influence Mark's
decision on where to buy the stereo system?View Solution:
The following is an excerpt from a conversation between Mark
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