Spending It All

A shopper has $62 to spend. Her shopping list includes a $16.95 purse, a $21.00 shirt, and a $39.50 telephone. She must pay 6% sales tax on her purchases. Which items should she buy if she wants to spend as much of the $62.00 as possible? She may buy more than one of any item, if advantageous.

Extension:
Suppose the shopper first stops for a snack, which costs her $2.75. Which item(s) can she now buy if she wants to spend as much of her $62.00 as possible?

(Source: Adapted from Mathematics Teaching in the Middle School, May 1996)