When a mail order is placed, a shipping and handling charge is often assessed to
cover the packing and postage or shipping charges for getting the item to you. There
is frequently a minimum charge that is the least you will pay for shipping and
handling on small orders. If the order is more than the minimum, a shipping and
handling charge is calculated as a percent of the total purchase price.
If the order is below the minimum, the minimum charge will apply. If the order is
larger, the shipping and handling charge is a certain percent of the the purchase price.
For example, if there is a minimum charge of $2.00 on orders less than $20.00 or 10% of the
total order price, and your order is $35.00, the shipping and handling would be
$35.00*10/100=$3.50. You would not pay the minimum charge because your order was
more than $20.00. Your total cost would be $35.00+$3.50=$38.50.