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Let's break this down piece by piece:
"A pair of skis cost $80 more than a pair of boots."
Let B = Price of Boots
Let S = Price of Skis
\[S = 80+B\]
"Together they sell for $294.25"
\[B + S = 294.25\]
But S = 80 + B, so re-write:
\[B + (B+80)=294.25\]
Ok, that would be our setup IF... there were no Tax!! :(
So we know that (B + (B+80)) has been marked up by 7%, or in other words, multiplied by 1.07.
The final equation is then this:
\[1.07(B + (B+80))=294.25\]
It says "Take the price of the boots, B, plus the price of the skis (B =80) and take that whole sum, and raise it by 7% (or multiply by 1.07). All of that is equal to $294.25."
So now we have to solve... From here it's an algebra problem where you solve for B. Remember though, when you find B you're NOT DONE! You still have to add $80 to it to find the price of the skis.
Hope this helps!